In a groundbreaking move, the Kenyan parliament has directed the Blockchain Association of Kenya (BAK) to draft the country’s first comprehensive cryptocurrency regulation bill. This marks a significant step towards establishing a clear regulatory framework for cryptocurrencies in Kenya.
The Directive
The National Assembly’s Departmental Committee on Finance and National Planning summoned BAK representatives on Oct. 31 to discuss regulating digital assets. According to BAK’s legal and policy director Allan Kakai, the committee gave the association two months to prepare the bill. This is the first time a Kenyan parliamentary committee has ordered an industry association to write legislation for review and potential approval.
The Implications
This directive is seen as a pioneering effort, as Kenya is poised to become the first country in the world where industry representatives are actively involved in shaping the regulatory framework for cryptocurrencies. The move seeks a collaborative effort for favourable web3 policies. If things flow in this direction, Kenya would become the first country to pass a crypto bill from industry leaders which is lauded across the community as a game changer that will drive investment to the market.
The Future
The push for legislation comes after Kenya introduced a 3% tax on crypto transfers and exchanges under the new Financial Act 2023 in September. BAK unsuccessfully lobbied against the tax earlier this year and has since challenged it in the High Court of Kenya.
With Nigeria, South Africa and other African nations making strides in crafting crypto regulations, MPs are urging BAK to demystify digital assets and help Kenya become a leader in the “Silicon Savannah”. The association has been asked to emphasize robust public education in its draft bill.
This development marks a significant milestone in the evolution of digital currencies and their integration into mainstream financial systems. As the Kenyan Blockchain Association continues to refine their regulatory approach, the future of cryptocurrencies in Kenya looks promising.