Kenya is gearing up to put its first ever rules around cryptocurrencies, aiming to bring some order to a market that’s been flying under the radar for years. The new Virtual Asset Service Providers (VASP) Bill is set to create a watchdog body with a mix of government officials and private players. But the inclusion of a lobby group called the Virtual Asset Chamber of Commerce (VAC) has stirred the pot—and not in a good way.
Image 1 (Source: LinkedIn)
A Lobby Group Caught Between a Rock and a Hard Place
VAC has been cozying up to Kenyan regulators and lawmakers for a couple of years now, pushing to replace a proposed flat 3% crypto tax with a higher but narrower 10% charge on service fees. That win has earned them a seat at the table for the new regulator. VAC’s director, Basil Ogolla, insists their spot on the board comes from hard yards and earned trust after extensive talks with the IMF, the Central Bank of Kenya, and Parliament.
But not everyone is singing from the same hymn sheet. Smaller crypto startups reckon VAC is in Binance’s back pocket. Word on the street is Binance hands VAC a tidy sum each month—about US$6,000 per country—to steer policy their way and draft regulations tailored to suit Binance’s business model. It’s got many worried this is a classic case of the fox guarding the henhouse, where rules get written to favour the big fish, leaving the little guys out in the cold.
Startups Raise the Alarm Bells
The murmurs of discontent are growing louder among local crypto operators. They say it’s fishy that VAC, which has a no-compete deal with Binance, suddenly finds itself sitting shoulder to shoulder with government heavyweights like the Central Bank governor. This cosy arrangement, they warn, could land Kenya in hot water with international watchdogs like the Financial Action Task Force (FATF), keeping the country stuck on global grey lists that scare off investment.
Image 2: (source: CM Advocates)
On the flip side, VAC stresses that it’s not just a one-trick pony for Binance. According to VAC’s leadership, their membership spans local and regional players, and they operate with a democratic process where their representatives are elected, not appointed by any single company. They claim this broad brush approach ensures nobody can hog the limelight or call the shots alone.
The Virtual Asset Service Providers Bill 2025 prioritizes strong consumer protection and introduces a clear, comprehensive regulatory framework for virtual asset activities in Kenya.
It seeks to safeguard users from fraud, ensure transparency, and promote responsible innovation… pic.twitter.com/L9F6lWrsZd
— Hon CPA Kuria Kimani, CBS – MP Molo (@KuriaKimaniMP) June 24, 2025
Binance’s Global Footprint: Not Just Kenya in Its Sights
Kenya isn’t the only place where Binance is planting flags. The crypto giant has been rubbing shoulders with governments across the globe, offering advice on everything from setting up Bitcoin reserves to building blockchain infrastructure. In Kyrgyzstan, Binance inked a deal to help build crypto payment systems and education. Meanwhile, in Pakistan, Binance’s ex-CEO Changpeng Zhao has joined the country’s newly minted Crypto Council to help steer blockchain policy.
Closer to home, Binance’s legal lead in Africa, Larry Cooke, has worked hand in glove with VAC to endorse Kenya’s VASP Bill. Together, they argue that the legislation is a much-needed step to clear the fog around digital assets and that heavy-handed taxes could throw a spanner in the works for local innovation.
Read also: Ethereum Set to Surge: What This Means for Altcoins and Bitcoin Dominance
The Finance Bill 2025 has knocked the proposed crypto tax down from 3% to 1.5%, hoping to strike the right chord between generating government revenue and keeping the crypto engines running. The VASP Bill sets out clear rules on licensing, anti-money laundering, and consumer protection—areas where Kenya’s patchy regulations have long left investors scratching their heads.
VAC and Binance see this framework as a golden opportunity for Kenya to lead the pack in Africa’s digital asset space. With a young, tech-savvy population and growing appetite for digital services, Kenya could be well placed to ride the blockchain wave. Binance Academy has already been spreading the word, offering training to everyone from crypto rookies to regulators, helping build a common understanding across the board.
