Crypto Startups in Kenya Raise Concerns Over Binance-Linked Lobby in Proposed VASP Bill

Crypto startups in Kenya are voicing concerns over the country’s proposed virtual asset service providers (VASP) Bill, warning that it could grant excessive influence to a Binance-linked lobby group, potentially undermining fair competition in the nation’s digital asset market. According to documents reviewed by The Kenyan Wall Street, the draft bill includes a private think tank, the Virtual Asset Chamber of Commerce (VAC), as part of the regulatory board that will oversee the crypto sector. Critics argue that VAC has previously hosted Binance-sponsored regulatory discussions, raising questions about its independence and whether it acts as a proxy for the global crypto exchange. Binance Ties with Kenya Regulatory Board Local crypto stakeholders have raised concerns about the transparency of VAC’s inclusion in the proposed regulatory board, noting its previous activities and alleged financial ties with Binance. “All regulation convos by VAC that happened recently have been sponsored by Binance. Then VAC, a private consulting entity, with a non-compete with Binance ‘magically’ gets a regulatory seat? How is this fair?” one stakeholder told The Kenyan Wall Street. Reports allege that Binance pays VAC $6,000 per country monthly for policy advocacy, raising concerns that the group may influence Kenya’s crypto regulations in Binance’s favor while sidelining local players. Some stakeholders fear that if entities with conflicts of interest guide crypto regulation, Kenya may risk remaining on the Financial Action Task Force (FATF) and EU grey lists, hindering the country’s access to global financial systems. Critics also pointed to similar concerns over VAC’s reported involvement in regulatory discussions in Rwanda, indicating a broader pattern of influence across African crypto markets. VAC Defends Role Responding to the concerns, VAC director Basil Ogolla defended the group’s track record, noting its two years of consultations with the International Monetary Fund (IMF), the Central Bank of Kenya (CBK), and Parliament. “The National Assembly’s decision to include VAC as a nominator in the regulatory board reflects the trust and confidence built through this track record of meaningful engagement,” Ogolla stated. The proposed regulatory board will also include representatives from the National Treasury, CBK, Capital Markets Authority (CMA), along with legal and accounting professionals. Binance did not respond to Cointelegraph’s request for comment. Meanwhile, the exchange continues to deepen its relationships with governments globally. In May, Binance signed an MOU with Kyrgyzstan to support crypto payments and blockchain education, while CEO Richard Teng recently confirmed the company is advising several governments on establishing Bitcoin reserves and crypto policies. The post Crypto Startups in Kenya Raise Concerns Over Binance-Linked Lobby in Proposed VASP Bill appeared first on TheCoinrise.com .

Source: The Coin Rise