Kenya is working on a new law called the Virtual Asset Service Providers (VASP) Bill to regulate cryptocurrencies. However, some local crypto businesses are worried because the law gives a group called the Virtual Asset Chamber of Commerce (VAC) a role in choosing members for the new regulatory board. This board will also include people from the country’s government, the Central Bank of Kenya, and other experts.
The concern is that VAC might favor a big global crypto company, Binance, because Binance reportedly pays VAC $6,000 a month to promote its interests. Some critics also say that VAC, which has organized Binance-funded talks, might push rules that will provide benefits to Binance and will damage some smaller Kenyan crypto businesses.
As per the reports, they are also worried that this could keep Kenya on international watchlists for financial issues and for harming the country’s reputation. One critic pointed out that VAC has a deal with Binance that might stop it from working lawfully while keeping competition equal. They have also questioned whether it is fair or legal for VAC to have so much power.
There are also statements that VAC tried to influence crypto rules in Rwanda, raising similar concerns. VAC’s director, Basil Ogolla, stated that they deserve a role because they have worked with important groups like the IMF and Kenya’s government for two years and have earned the trust.
On June 25, 2025, the Virtual Asset Service Providers (VASP) Bill passed its second stage in the country’s parliament, and now the bill is still being reviewed by Kenya’s parliament, and the debate continues on how to secure and implement fair rules for all crypto businesses.
In the past, the country’s crypto market had rapid growth, but it had also faced major crises such as scams. However, the country’s government is now working to control such scams by implementing new rules to protect crypto users.
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