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Crypto Startups Concerned About Binance Link To Proposed VASP Bill In Kenya
The cryptocurrency industry in Kenya is facing a regulatory challenge as local startups are raising concerns about the involvement of a Binance-backed lobby group in the development of the proposed Virtual Asset Service Providers (VASPs) Bill. The bill aims to govern the use and exchange of cryptocurrencies within the East African nation, but the inclusion of the Virtual Asset Chamber of Commerce (VAC), allegedly backed by Binance, has sparked concerns about the potential for undue influence.
According to sources close to the matter, VAC’s involvement in the regulatory process could compromise fair competition and regulatory independence. The proposed bill is a significant milestone in the development of Kenya’s digital asset market, which is expected to contribute substantially to the country’s GDP.
The cryptocurrency industry has been rapidly growing in Kenya, with the number of users increasing significantly over the past year. However, this growth has not been without controversy. Local stakeholders are questioning the transparency and impartiality of VAC’s role in shaping the regulatory landscape, highlighting potential conflicts of interest within Kenya’s crypto regulatory framework.
Critics argue that VAC’s involvement could result in regulations tailored to benefit Binance, potentially stifling innovation and competition in the market. Furthermore, they express concerns about the impact on the country’s burgeoning digital asset industry, citing recent examples of similar regulatory developments in Rwanda.
The proposed bill includes a 3% digital asset tax, sparking debate among stakeholders about its potential implications for the industry. While some advocate for the measure to generate revenue, others argue that punitive taxation measures could deter investment and innovation in the sector.
As Kenya prepares for the Financial Action Task Force (FATF) assessment deadlines, local cryptocurrency exchanges are urging the government to reconsider VAC’s involvement in the regulatory process. The stakes are high, as Kenya’s cryptocurrency industry is expected to contribute significantly to its GDP.
Source: usethebitcoin.com
