The community-led draft Virtual Asset Service Provider (VASP) bill has an extended feedback period, according to the Blockchain Association of Kenya (BAK), Kenya’s top lobby group for the digital asset sector.
The association received a mandate from the National Assembly’s Finance and National Planning Committee in November 2023, which led to the development of the VASP Bill.
The BAK was given the responsibility of creating a framework to regulate the cryptocurrency market as the absence of one had allowed questionable coin scams to proliferate and steal millions of Kenyans.
On February 14, 2023, the VASP Bill was expected to be delivered to the National Assembly Committee. However, in consultation with its members, the association decided to extend the feedback period due to the increased interest from new stakeholders, including government agencies and other stakeholders affected by bill elements.
The Executive Board of the association declared at a stakeholder breakfast on the 16th at the Sankara Hotel that the feedback time would be extended to a later date in the future. The bill is open for review and comment from interested parties.
Should the bill pass, it would have an impact on a wide range of stakeholders, some of whom might not even be directly associated with the digital asset industry. Thus, the purpose of the extended feedback time is to obtain feedback from all parties impacted, either directly or indirectly, by the provisions of the Virtual Asset Service Providers law.
“The Virtual Asset Service Provider bill is a significant milestone towards curbing the rampant crypto currency-related scams that thrive and continue to defraud Kenyans of millions of shillings because there are no frameworks to protect the public,” Board Chairman Michael Kimani said during the breakfast meeting.
The Directorate of Criminal Investigations (DCI) issued a warning to Kenyans last week about the rise in con artists preying on people through cryptocurrency schemes.
The association was tasked with drafting a bill that outlines licensing requirements and consumer protection principles in order to guarantee that Kenyans are protected to the fullest extent feasible. This is one of the reasons behind this responsibility, among others.
Since the Central Bank of Kenya advised banks not to cooperate with cryptocurrency companies in 2015, a significant portion of the cryptocurrency industry has moved underground, operating unchecked and making it challenging for law enforcement and government agencies to deal with.
