Concern is mounting in Kenya's crypto ecosystem over the proposed Virtual Asset Service Providers (VASP) Bill, which could grant significant influence to a Binance-linked lobby group.
Concerns in Kenya's Crypto Ecosystem
Critics argue that the bill could create an uneven playing field for local startups. At the center of the controversy is the Virtual Asset Chamber of Commerce (VAC), which may be included in the new regulatory board if the bill passes. Many industry participants allege that VAC is too closely tied to Binance, lacking the independence required of a regulatory body.
VAC's Financial Support from Binance
Reports suggest that VAC is compensated by Binance at a rate of $6,000 per country per month for policy advocacy, raising concerns about undue influence. Critics note that Binance is not listed among VAC's official partners, which amplifies fears regarding the level of influence this company may have.
VAC Responds to Criticism
VAC Director Basil Ogolla defended the organization's role, citing years of engagement with financial institutions including the IMF and the Central Bank of Kenya. He highlighted that the National Assembly's decision to include VAC in the regulatory board reflects trust based on its track record. However, critics continue to express concerns over fair regulatory practices in the country.
The situation in Kenya represents a critical case study on how crypto giants interact with regulatory frameworks and its implications for local markets.
