Kenya’s National Assembly’s Departmental Committee on Finance and National Planning has engaged the Blockchain Association of Kenya (BAK) to play a pivotal role in creating the country’s first draft bill on crypto asset regulation. Additionally, the committee has requested the association to spearhead a comprehensive public education campaign aimed at demystifying cryptocurrency trading.
- Creation of Crypto Regulation Bill: The Blockchain Association of Kenya, in collaboration with other stakeholders, has been tasked with preparing the initial draft of what could become Kenya’s virtual asset service provider’s bill. This move reflects the country’s recognition of the growing importance of the crypto sector and the need for regulatory clarity.
- Public Education Campaign: Alongside the drafting of the bill, the committee has urged the Blockchain Association of Kenya to undertake a robust public education initiative on cryptocurrency trade. The goal is to provide clarity and understanding to the public, demystifying the intricacies of cryptocurrency trading.
- Kenya’s Crypto Trade Status: The committee’s decision comes in the wake of Kenya being identified as the third most active country in Africa in terms of crypto trade. Notably, nearly $20 billion in crypto transactions were recorded between July 2021 and June 2022, underlining the significance of the crypto market in the country.
- Digital Asset Tax Compliance Concerns: There have been concerns raised about the compliance of members of the Blockchain Association of Kenya with the recently introduced digital assets tax. Members have reportedly faced challenges in paying taxes, citing existing structures that do not support tax payments. The association highlighted a circular issued by the Kenyan central bank as one of the complicating factors.
This engagement between the Kenyan parliamentary committee and the Blockchain Association of Kenya marks a significant step toward developing a regulatory framework for the crypto industry in the country. The call for public education aligns with the need to enhance understanding and awareness of cryptocurrency trading practices.
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