In an Ongoing Wave of Crypto Adoption

Crypto policy and regulation are increasingly scrutinized by market players. Recently, Kenya’s draft VASP Bill aims to embed a Binance-linked think tank on its oversight board, as disclosed by The Kenyan Wall Street.

Kenya’s Crypto Bill Raises Eyebrows

The VASP (Virtual Asset Service Providers) Bill is currently with Parliament, naming the Virtual Asset Chamber of Commerce (VAC) as one of the five private-sector nominators for the new Virtual Assets Regulatory Authority. The bill passed its Second Reading on June 25, 2025, and is now pending committee review. The proposed board will have representatives from the National Treasury, the Central Bank of Kenya (CBK), the Capital Markets Authority (CMA), a lawyer, an accountant, alongside VAC.

A confidential agreement reveals that Binance pays VAC $6,000 monthly per country for “policy advocacy.” Critics argue this ongoing retainer compromises VAC’s independence, granting Binance significant influence over Kenya’s crypto regulations. Several Kenyan crypto startups criticized VAC’s appointment, raising concerns that recent regulatory discussions were funded by Binance.

One stakeholder remarked, “How is this fair? How is this constitutional?” Another warned that Kenya risks remaining on the Financial Action Task Force (FATF) grey list if a conflicted entity gains regulatory power, stating, “If a questionable entity becomes our crypto regulator, Kenya shall never leave these lists.”

VAC’s Defense and Track Record

VAC director Basil Ogolla defended the think tank’s involvement, citing a two-year collaboration with the International Monetary Fund (IMF), CBK, and Parliament to show VAC’s credibility. He stated, “The inclusion of VAC reflects the trust built through meaningful engagement.”

Once enacted, the VASP Bill’s Virtual Assets Regulatory Authority will consist of two appointees from the National Treasury, two from the Central Bank of Kenya, and two from the Capital Markets Authority, along with nominees from a lawyers’ association, an accounting body, and VAC.

Critics note a similar situation in Rwanda, where VAC allegedly influenced that country’s crypto regulations. Coinbase has raised alarms about policy capture in emerging markets.

Meanwhile, the committee review in Parliament is set for July 2025, with potential amendments to remove private-sector nominators or enforce stricter conflict-of-interest regulations. Kenyan crypto startups continue to advocate for transparent governance, calling for open hearings and scrutiny of advisory contracts.