The Blockchain Association of Kenya (BAK) is making significant strides in its efforts to position Kenya as a hub for digital assets. Recently, reports emerged indicating that BAK is poised to introduce a community-led draft bill aimed at regulating the nation’s digital asset industry. This draft bill, known as the Virtual Assets Service Provider Bill, is a culmination of extensive collaboration within the country’s cryptocurrency community.
Kenya’s BAK set to introduce digital asset regulatory bill
Founded in 2017, BAK has long envisioned Kenya becoming a prominent player in the digital asset space, akin to jurisdictions like Singapore and Dubai. The introduction of the Virtual Assets Service Provider Bill marks a crucial step toward realizing this vision. Spearheaded by Michael Kimani, BAK’s founder and chairman, the draft bill has been subject to feedback and input from various stakeholders in the Kenyan cryptocurrency ecosystem.
The draft bill, published on January 22, has elicited constructive feedback from stakeholders, underscoring the collaborative nature of the initiative. According to reports, BAK has actively sought input from affected parties, with a deadline for feedback set for February 7. This inclusive approach reflects BAK’s commitment to ensuring that the regulatory framework aligns with the needs and concerns of all stakeholders involved.
In an interview with the Star, Allan Kakai, BAK’s Director of Public Policy and Regulatory Affairs, highlighted the positive impact of collaboration between regulators and participants in Kenya’s digital asset sector. Kakai emphasized that such cooperation fosters an environment conducive to innovation and growth within the blockchain ecosystem.
This sentiment underscores the importance of regulatory clarity and industry engagement in driving the development of Kenya’s digital asset landscape. Meanwhile, Paul Gachora, CEO of BAK, emphasized the collaborative nature of the Virtual Assets Service Provider Bill, describing it as the culmination of months of concerted effort.
Collaborative efforts drive innovation in Kenya
Paul Gachora’s remarks underscore the dedication and commitment of BAK and its partners in shaping a regulatory framework that promotes transparency, security, and innovation in the digital asset sector. One of the key objectives of the Virtual Assets Service Provider Bill is to establish a robust regulatory framework for virtual asset service providers in Kenya.
By delineating clear guidelines and standards, the bill aims to enhance investor confidence, mitigate risks, and combat illicit activities such as money laundering and terrorist financing. Moreover, the bill seeks to promote responsible innovation and entrepreneurship within the digital asset space, thereby positioning Kenya as a conducive environment for blockchain-based ventures.
The collaborative approach adopted by BAK in drafting the bill reflects a broader trend toward regulatory engagement and dialogue within the global cryptocurrency community. As governments worldwide grapple with the regulatory challenges posed by digital assets, initiatives like the Virtual Assets Service Provider Bill serve as models for constructive engagement between industry stakeholders and policymakers.
Looking ahead, the submission of the revised draft bill to the Kenyan National Assembly’s Departmental Committee on Finance and National Planning by February 14 marks a crucial milestone in the legislative process. BAK remains committed to fostering an inclusive and transparent regulatory framework that supports the growth and development of Kenya’s digital asset ecosystem.
The Blockchain Association of Kenya’s initiative to introduce a community-led draft bill for the regulation of digital assets signifies a significant advancement in the country’s journey towards becoming a hub for blockchain innovation. Through collaboration, engagement, and proactive regulatory efforts, BAK aims to position Kenya as a leader in the digital asset space, driving economic growth and fostering technological innovation in the process.
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