April 19, 2024
Kenya's BAK Leads in Crafting Crypto Regulation Bill
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Kenya’s BAK Navigates Crypto Regulation Drafting, Aiming for Industry Leadership

Kenya is on the verge of potentially achieving a milestone globally by allowing industry representatives to construct the regulatory framework for cryptocurrencies. The Blockchain Association of Kenya (BAK) revealed that the National Assembly’s Departmental Committee on Finance and National Planning has tasked them with formulating the initial draft of a bill aimed at regulating virtual asset service providers.

In a meeting held on Oct. 31, representatives from BAK were summoned by the Committee on Finance and National Planning to deliberate on the regulation of digital assets. Allan Kakai, the legal and policy director of BAK, disclosed the meeting’s intricacies to the local media outlet, Mariblock. He emphasized Kenya’s position as a digital asset hub in Africa and highlighted the necessity for a clear licensing and regulatory framework to maintain their status, warning that other countries such as Nigeria, South Africa, Botswana, Namibia, and Mauritius could surpass Kenya if such a framework isn’t established.

In response to this concern, the committee granted BAK a two-month window to prepare the proposed crypto bill. The official statement from the committee’s X account, formerly known as Twitter, emphasized the importance of comprehensive public education on cryptocurrency trading to debunk misconceptions. Notably, in September 2023, Kenya introduced the Financial Act 2023, which mandates cryptocurrency exchanges to withhold 3% of the transfer or exchange value of digital assets. Although the BAK failed to dissuade lawmakers from implementing this crypto tax during a previous meeting in May, they filed a complaint against it with the High Court of Kenya.

Moreover, Kenyan authorities adopted a stern stance against the contentious digital identification crypto initiative, Worldcoin, co-founded by Sam Altman, the CEO of OpenAI. A parliamentary committee within the Kenyan government suggested that regulators cease the project’s operations in the country, citing concerns over the harvesting of personal data.

Image bye pixabay

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