Kenya is poised to break new ground on the global stage as it contemplates an unprecedented move in the cryptocurrency domain. The Blockchain Association of Kenya (BAK) has been commissioned by the National Assembly’s Departmental Committee on Finance and National Planning to craft a pioneering bill for the governance of virtual asset service providers.
A Collaborative Forge: Crafting the Framework for Digital Assets
On the cusp of a regulatory revolution, the BAK stands at the forefront of shaping Kenya’s digital fiscal landscape. The directive, issued after a pivotal October session with the Committee on Finance and National Planning, tasks the Association with the conception of legislative architecture that could place Kenya at the vanguard of cryptocurrency regulation.
Allan Kakai, BAK’s esteemed director of legal and policy affairs, illuminated the essence of the dialogue with Mariblock, a local news outlet, painting a vision of Kenya’s potential to become a crucible for digital assets in Africa. He underscored the urgency of establishing a lucid system for licensing and oversight, lest neighboring nations eclipse Kenya’s position as a nexus for digital finance.
The legislative committee, recognizing the magnitude of the task, allotted a two-month timeframe for the BAK to present the draft bill. Emphasizing the necessity for public enlightenment, the committee articulated through its official X (formerly known as Twitter) channel a call to action for the Association to dispel the enigma surrounding cryptocurrency through comprehensive educational initiatives.
Crypto Taxation: The Financial Act 2023 Conundrum
In a backdrop of legislative developments, September 2023 marked the introduction of the Financial Act 2023. This act codified a mandate for cryptocurrency exchanges to retain a 3% tax on the transactional or exchange value of digital assets—a stipulation met with resistance from the BAK. Following a fruitless attempt to sway legislative opinion in May, the Association escalated their grievances to the High Court of Kenya, seeking redress.
A Firm Stance on Digital Identity: Worldcoin’s Controversy
The Kenyan legislative and regulatory fabric has been tested by the incursion of Worldcoin, a controversial digital ID crypto project co-initiated by OpenAI CEO Sam Altman. Amidst rising trepidations regarding the harvesting of personal data, a Kenyan parliamentary committee has issued a stark recommendation for the cessation of Worldcoin’s operations within the nation’s borders, catalyzing a decisive response to privacy concerns in the burgeoning crypto landscape.
