Kenyan blockchain advocacy group, the Virtual Assets Chamber of Commerce (VACC) has held a practical training session for members of the Kenyan parliament’s committee on finance and national planning.
The training session aimed to help regulators better understand virtual assets and how they work towards creating effective regulations.
The details
- According to reports, the training session, which VACC facilitated with the support of global exchange Binance, took place at the country’s capital city, Nairobi.
- Among other things, members of the Finance and National Planning Committee conducted real-time transactions on Binance to better understand how cryptocurrencies work.
- In addition, the legislators looked to gain technical knowledge on blockchain technology, digital assets and global regulatory challenges plaguing the crypto ecosystem.
- The exercise is a furtherance of the Kenyan parliament’s move to pass the Virtual Assets Service Providers (VASP) Bill 2025, a process which is now in a two-week public participation stage.
Key quotes
- VACC’s director, Allan Kakai, commenting on the scope of the training session, said:
“We discussed consumer protection, financial crime, and monetary policy. The session offered critical strategies to safeguard users and support responsible growth.”
- A member of the parliamentary committee, Julius Ruto, commented:
“This is a new frontier. Kenya is already third in Africa in virtual asset adoption. We must protect consumers and investors with proper legislation.”
Why this matters
- Due to the relative novelty of blockchain technology and virtual assets, regulators have often been accused of lacking a proper understanding of blockchain technology and cryptocurrencies.
- This lack of understanding has been named as a major barrier to the formulation of effective regulations.
- Until now, Kenya has looked to tax crypto assets in a move some have termed as a tactical play by the authorities to tax crypto into oblivion, similar to the East African country’s crackdown on the gambling industry.
- However, regulations seem to be gaining traction in Kenya, and the regulators’ commitment to acquire more technical expertise in the workings of digital assets may propel it towards implementing regulations faster and more effectively.
Before now
- In April, the Kenyan National Treasury submitted a bill to regulate the operations of VASPs in the country to the country’s National Assembly.
- The bill, dubbed the VASP Bill 2025, followed closely on the heels of draft guidelines which the agency released last December.
- Chiefly, the bill sought to bring VASPs in the country under the regulatory purview of the Kenyan Capital Markets Association and the Central Bank of Kenya.
- Earlier in the year, VACC announced that it had submitted policy recommendations to the technical committee on crypto regulations, highlighting the group’s efforts to liaise closely with the lawmaking body.
