In an ongoing wave of crypto adoption, crypto policy and regulation are often seen coming under fire from market players. In a recent update, Kenya’s draft VASP Bill is to embed a Binance‑linked think tank on its oversight board, according to disclosures seen by The Kenyan Wall Street.
According to a report by The Kenyan Wall Street, the inclusion of the Virtual Asset Chamber of Commerce (VAC) on the regulatory authority’s board sparked warnings that the move could tilt Kenya’s digital‑asset rules in favor of the world’s largest exchange.
Kenya’s Crypto Bill Raises Eyebrows
The VASP (Virtual Asset Service Providers) Bill, currently before Parliament, names VAC as one of five private‑sector nominators to the new Virtual Assets Regulatory Authority.
The bill passed its Second Reading on June 25, 2025, and now awaits committee review. Under the draft law, the board will include representatives from the National Treasury, Central Bank of Kenya (CBK), Capital Markets Authority (CMA), a lawyer and an accountant—alongside VAC.
A confidential agreement cited by the Report, shows Binance pays VAC $6,000 per country each month for “policy advocacy.” Critics say this ongoing retainer compromises VAC’s independence and signals outsized influence for Binance over Kenya’s crypto regulations.
Several Kenyan crypto startups have publicly condemned VAC’s appointment. “All regulation convos by VAC that happened recently have been sponsored by Binance,” one stakeholder told The Kenyan Wall Street.
“Then VAC, a private consulting entity, with a non‑compete with Binance ‘magically’ gets a regulatory seat? How is this fair? How is this constitutional?”
Another industry figure warned that Kenya risks remaining on the Financial Action Task Force (FATF). That EU grey‑lists if a conflicted entity gains regulatory power, adding,
“If an entity of poor international reputation or one with clear conflict of interest becomes our crypto regulator, Kenya shall never leave FATF and EU greylists.”
VAC’s Defense and Track Record
VAC director Basil Ogolla defended the think tank’s role in comments to The Kenyan Wall Street. He cited a two‑year consultation campaign with the International Monetary Fund (IMF), CBK and Parliament as evidence of VAC’s credibility. According to Ogolla,
“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.”
Once the VASP Bill is enacted, the Virtual Assets Regulatory Authority will be staffed by two representatives from the National Treasury, two appointees from the Central Bank of Kenya, and two members from the Capital Markets Authority.
In addition, the board will include one nominee each from a lawyers’ association, an accounting body, and the Virtual Asset Chamber of Commerce.
Critics note a similar pattern in Rwanda, where VAC reportedly sought to shape that country’s crypto rules. Coinbase recently highlighted concerns over policy capture in emerging markets.
Meanwhile, Parliament’s committee review is scheduled for July 2025. Observers say amendments could remove private‑sector nominators or impose stricter conflict‑of‑interest rules.
Kenya’s crypto startups continue to lobby for transparent governance. They advocate open hearings and public scrutiny of all advisory contracts.
