Some crypto startups have raised concerns about Kenya’s proposed Virtual Asset Service Providers (VASP) bill, warning that it could hand over huge influence to the double-linked lobby group, which could undermine the country’s digital asset industry.
According to the disclosure See By Kenyan Wall Street, a private think tank called the Virtual Assets Chamber (VAC) will be included in the regulatory committee of the draft law.
Some crypto stakeholders in Kenya claim that VAC conducts regulatory negotiations with binary sponsorship, lacks independence, and is an agent for exchanges.
“All the regulations tours of the recent VAC have been sponsored by Binance. Then, the private consulting entity VAC, with Binance’s ‘Maginally’, has a fair constitution? A stakeholder told Kenya Wall Street.
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Binance reportedly pays for VAC
The report claims that Binance pays $6,000 per month to VAV on confidentiality agreements. This has raised concerns that lobby groups may be biased towards Kenya’s cryptocurrency rules, thus benefiting Binance and sideline local players.
Critics reportedly pointed to similar attempts to insert themselves into Rwanda’s regulatory process, according to the report.
Another stakeholder warned: “If entities with poor international reputation or obvious conflict of interest become our crypto-regulatory authority, Kenya will never leave the FATF and the EU’s list.”
VAC Director Basil Ogolla defended the role of VAC in her comments on Wall Street in Kenya, pointing to a two-year consultation with the International Monetary Fund (IMF), the Central Bank of Kenya (CBK) and the Parliament.
“The decision of the National Assembly to include VAC as a nominee in the Regulatory Commission reflects the trust and confidence built through such a record of meaningful participation,” Ogora said.
It is worth noting that Kenya’s new regulator will also include representatives from the National Finance Ministry, the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA), as well as lawyers and accountants.
CoIntelegraph has reached out to help, but has not received a response through the publication.
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Deeper obligations to deepen ties with global governments
May, binance Signed a memorandum of understanding (MOU) National Investments introduces the country’s crypto payment infrastructure and blockchain education.
In an interview on April 17, CEO Richard Teng revealed that binance is Actively suggest several governments Establish strategic Bitcoin reserves and develop crypto policies.
“In fact, we’ve received multiple approaches from some governments and have provided sovereign wealth funds for building our own crypto reserves,” Teng said.
https://www.youtube.com/watch?v=wye8xsmau8c
Earlier, on April 7, former CEO Changpeng Zhao was Appointed as a new consultant in Pakistan The Crypto Commission will oversee the country’s blockchain and digital asset programs.
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