Kenya Paves the Way in Crypto Regulation, Plans Digital IDs Amid Privacy Concerns
Summary:
Kenya could be the first country to let industry professionals devise a regulatory framework for cryptocurrencies. The Blockchain Association of Kenya has been asked by The National Assembly's Finance and National Planning Committee to prepare the initial draft of a potential virtual asset service provider bill. The Committee has also highlighted the importance of public education on cryptocurrency trade. Kenya plans to launch digital IDs for locals by the end of the year. Meanwhile, authorities have expressed concerns over a digital ID crypto project by Worldcoin due to data harvesting issues.
Kenya could set a global precedent by allowing industry professionals to construct the regulation framework for cryptocurrencies. The Blockchain Association of Kenya (BAK) has been tasked by The National Assembly's Finance and National Planning Departmental Committee to compile the inaugural draft of a potentially upcoming virtual asset service provider legislation. Representatives from BAK had been invited by the Finance and National Planning Committee on October 31 to discuss and explore the realm of digital asset regulation. Allan Kakai, BAK's legal and policy head, released details about the session, highlighting Kenya's role as a leading digital asset industry in Africa. He added that without a sound licensing and regulatory structure, the capital could be potentially diverted to other African countries such as Nigeria, South Africa, Botswana, Namibia, and Mauritius. BAK was granted two months to draft the cryptocurrency legislation by the Committee. The Committee's former Twitter account alluded to the importance of comprehensive public education about cryptocurrency trading in order to dissolve the surrounding confusion and ambiguity.
In related news, Kenya plans to implement digital identities for its citizens before the year ends. In September 2023, Kenya rolled out the Financial Act 2023 which mandates cryptocurrency exchanges to withhold three percent of the digital asset's transfer or exchange value. The tax imposition on crypto transactions prompted BAK to lodge a formal complaint against it to the High Court of Kenya, after their initial attempt to deter the passing of this legislation failed. The Kenyan government has sternly opposed Worldcoin's controversial digital ID crypto project, spearheaded by Sam Altman, the current CEO of OpenAI, due to concerns of personal data harvesting. A parliamentary committee recommended stopping the project within the country.
Published At
11/7/2023 8:56:11 AM
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