The Parliament of Kenya has supported a bill that creates a transparent regulatory framework for the digital assets market in the country for the first time. The document, known as the Virtual Asset Service Providers Bill, aims to regulate the activities of virtual asset service providers and the circulation of cryptocurrencies.
This is reported by Finway
Regulation and Oversight of Cryptocurrencies
The bill stipulates that the Central Bank of Kenya will have the authority to license stablecoins and issue digital assets. At the same time, the activities of cryptocurrency exchanges and trading platforms will be overseen by the local capital markets regulator. This approach is expected to ensure transparency and security for users of digital financial instruments.
The initiative was developed with consideration of international experience, particularly the legislative practices of the United States and the United Kingdom. The chair of the parliamentary finance committee, Kuria Kimani, notes that the implementation of new rules will eliminate uncertainty regarding the legal status of crypto assets in the country and will promote the growth of the sector.
Opportunities for Investors and Youth
“The new legislation is expected to create clearer rules of the game, which in turn will stimulate investments in the fintech sector, particularly from leading cryptocurrency exchanges such as Binance and Coinbase.”
Kuria Kimani expressed hope that Kenya will become a leading hub for digital finance on the African continent. According to him, most young Kenyans aged 18 to 35 are already actively using virtual assets for trading, making payments, investing, and conducting business.
The final enactment of the law is possible after the signature of President William Ruto. It is worth noting that earlier this year, the country’s authorities announced the preparation of this bill to legalize crypto assets.