Kenya’s proposed virtual asset service providers (VASP) Bill has raised alarm among local crypto startups, who fear that it may favor a Binance-linked lobby group known as the Virtual Asset Chamber of Commerce (VAC). Some stakeholders argue that VAC, which they claim has conducted Binance-sponsored regulatory discussions, lacks independence and may act as a proxy for the exchange. Reports indicate that Binance reportedly pays VAC $6,000 per country each month for policy advocacy, raising fears of a potential monopoly affecting local players. VAC’s director defended the organization, highlighting its consultations with key regulatory bodies like the IMF and Central Bank of Kenya. The newly proposed regulatory body will also include representatives from the National Treasury and Capital Markets Authority. Observers from the crypto community worry that if an entity lacking a solid reputation oversaw crypto regulations in Kenya, the country might struggle to shake off financial watchdog lists. These concerns echo similar issues VAC has faced in Rwanda’s regulatory landscape.

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