Binance Ties to Kenyan Crypto Board Spark Monopoly Concerns

Binance’s Influence Under the Spotlight in Kenya’s New Crypto Bill Kenya’s proposed Virtual Asset Service Providers (VASP) Bill is facing withering criticism from Kenyan crypto startups , who contend that it would place excessive power in the hands of a Binance-affiliated lobby association, the Virtual Asset Chamber of Commerce (VAC). The bill mandates a regulatory board that should oversee the country’s digital asset market. However, news that VAC, a reportedly Binance-connected think tank will be helping out with the nomination of members to the board has ignited gripes of bias and unfair competition. Binance Apparently Funds VAC Activities The Kenyan Wall Street wrote that Binance remunerates VAC $6,000 a month for each nation for policy advocacy. The critics argue that the payment would be eroding the independence of VAC and would be an instance of conflict of interest, especially with its new role in defining the regulatory landscape of Kenya. “VAC, non-competing with Binance private entity, now receives a seat at the table? This undermines fair regulation,” opined an unnamed stakeholder. Regional Influence and FATF Greylisting Concerns Critics also cited VAC’s past lobbying in Rwanda, sparking warnings of a trend. Others point out that if VAC becomes influential in shaping Kenya’s crypto policy, it will struggle to exit the Financial Action Task Force (FATF) and EU grey lists. “If our regulator is conflicted in this manner, we can put ourselves at global reputational risk,” said another industry source. VAC Defends Its Role Amid Scrutiny VAC director Basil Ogolla rushed to the group’s defense in reply, citing its two-year engagement with institutions like the IMF, Central Bank of Kenya, and Parliament. “The trust placed in the National Assembly is a consequence of VAC’s active role in developing well-rounded crypto regulation,” stated Ogolla. Binance’s Global Government Outreach Expands Kenya is not alone in that, though. Binance is also increasing its policy footprint in other countries. In May, the exchange inked an MoU with the Kyrgyzstan investment agency to promote blockchain infrastructure. Earlier this April, Binance CEO Richard Teng reaffirmed ongoing consultations with governments regarding crypto reserves, while former CEO Changpeng Zhao was appointed adviser to Pakistan’s new Crypto Council. Outlook: Calls for Balanced Oversight As the VASP Bill advances, crypto stakeholders in Kenya are demanding checks and balances in regulator appointments. Ensuring no single organisation — especially one with powerful corporate clout — gets to monopolise the process is crucial to encouraging fair, open, and competitive crypto regulation in Kenya.

Source: BTC Pulse