by Ronald Njoroge
The Blockchain Association of Kenya (BAK) on Monday submitted the draft Virtual Asset Service Provider (VASP) bill to the National Assembly.
Michael Kimani Chairman of the Board and acting CEO of BAK said that the absence of a legal regime has led to the defrauding of Kenya via cryptocurrency scams.
“We believe that it is a timely Bill and hope that it will be given priority as it has the ability to create a licensing mechanism for players in this field, provide consumer protection mechanisms, require reporting by the players to aid in combating Anti-Money Laundering and attract foreign direct investment,” Kimani said.
The bill when put in place provides for the licensing and regulation of virtual asset service providers; issuance of tokens to the public via digital platforms and exchanges and to provide for matters connected, incidental and related thereto for purposes of promoting investment in virtual assets, ensuring consumer protection, preventing market abuse and preventing or mitigating the risk of money laundering and financing of terrorism and proliferation activities.
Kimani added that the proposed law will establish the Joint Virtual Assets Regulatory Sandbox which shall be an operating framework managed by the office of virtual assets to facilitate and support the development of an efficient and globally competitive virtual assets sector in Kenya.
The types of license under the bill include class A for the virtual assets exchanges for persons who provide services related to a virtual assets exchange while class B is for custodial services and wallets.
BAK hopes that the new law will curb capital flight and money laundering via digital assets.