Kenya’s Virtual Asset Law: Key Proposals

IOTA Foundation’s Feedback on Kenya’s VASPs Bill

TL;DR:

The IOTA Foundation provides feedback on Kenya’s Virtual Asset Service Providers Bill, 2024, recommending clearer definitions, stronger consumer protections, and alignment with international standards and best practices. Key proposals include refining token classifications, improving cybersecurity rules, and ensuring fair regulatory processes to foster innovation, security, and trust in Kenya’s digital asset ecosystem.

The IOTA Foundation has provided detailed comments on Kenya’s proposed Virtual Asset Service Providers Bill, 2024, recognizing it as a key step toward a clear and forward-thinking regulatory framework for the country’s digital asset ecosystem. By refining definitions and aligning the bill with international standards and best practices, Kenya has an opportunity to position itself as a leader in responsible blockchain innovation.

Our feedback focuses on ensuring regulatory consistency, protecting consumer rights, and fostering an environment that supports both innovation and security. Key recommendations include:

• Clarifying token definitions to better reflect global standards, such as the EU’s MiCA regulation.
• Ensuring fair regulatory processes, including clear timelines for compliance and appeal mechanisms.
• Enhancing security measures for virtual asset custody, cybersecurity, and consumer protection.
• Recognizing decentralized finance (DeFi) realities, particularly regarding decentralized platforms and Initial Virtual Asset Offerings.

By adopting these refinements, Kenya can create a robust and future-proof regulatory framework that encourages investment and technological growth while safeguarding market integrity.