Kenya takes a step towards regulating crypto-currency
The Kenyan government has asked the Blockchain Association of Kenya (BAK) to write the first draught of the Crypto Bill, also known as the Virtual Asset Service Provider's Bill, in a move that could see crypto-currencies regulated.
The government made the recommendation after BAK appeared before the National Assembly Committee on Finance and National Planning.
BAK appeared before the committee to discuss digital asset legislation and how it may collaborate with the government to promote advantageous digital asset policy.
Representatives from Binance, Yellow Card, Kotani Pay, and the Law Society of Kenya were also present throughout the deliberations
They gave a comprehensive presentation to the committee outlining critical factors for implementing a strong crypto regulatory framework.
This featured a clear licencing structure, a tax framework, a framework for consumer protection, anti-money laundering and counter-terrorism financing measures, and a regulatory sandbox.
This is not the first time that Kenyans have discussed crypto-currency regulations.
The Kenyan Senate took the proactive move in February of this year to engage the Central Bank of Kenya (CBK) in discussions that could result in the country legalising the usage of crypto-currency as legal cash.
The Senate's Standing Committee on Information, Communication, and Technology, chaired by Trans Nzoia Senator Allan Chesang, led the debate.
The CBK addressed the need, opportunity, and risks provided by digital currencies in Kenya in its discussion paper.
The regulatory framework is planned to investigate a wide range of digital payments, including electronic money (e-money), crypto-currency, stable coins, and Central Bank Digital Currency, which is defined by the CBK as a digital currency issued by the central bank and intended to serve as legal tender.
It is the same as fiat currency and may be exchanged one for one with fiat currency, except that it is in electronic form.
The CBK also invited members of the public, industry, and stakeholders to peruse the Discussion Paper and provide appropriate feedback.
Kenya is Africa's third most active Bitcoin asset trader, with the largest web traffic to crypto-currency sites.
If passed, the bill will be a key step towards the realisation of a comprehensive regulatory framework for Kenya's digital asset business.