Kenya Proposes Law For Local Offices Of Virtual Asset Providers

According to PANews, the Kenyan government is drafting legislation that would require virtual asset service providers to establish local offices. This move aims to enhance regulation of the rapidly expanding digital asset sector. The proposed policy will not apply to assets that cannot be transferred, traded, or used for payments and investments outside closed ecosystems. It seeks to address gaps in the legal and regulatory framework for virtual assets, focusing on consumer protection, governance, data privacy, and cybersecurity. In 2023, Kenya introduced a 3% tax on digital asset transaction income but has yet to establish a comprehensive regulatory framework for the industry. The government aims to fill this regulatory void while addressing risks such as money laundering, terrorism financing, tax evasion, fraud, and cybercrime.