Kenya’s Draft Crypto Legislation to be Open for Public Comment Until January 24

Kenyan Finance Minister John Mbadi recently said that the government is "committed to establishing the necessary legal and regulatory framework for cryptocurrencies." Kenya is drafting a new proposal called the "National Policy on Virtual Assets and Virtual Asset Service Providers." The draft proposal outlines plans to create a "fair, competitive and stable market" for cryptocurrencies in Kenya while addressing risks such as money laundering, terrorist financing and consumer protection issues. "The main objective of this policy is to guide the development of a fair, competitive and stable market for virtual assets (VAs) and virtual asset service providers (VASPs) in Kenya," the draft proposal reads. The draft further proposes "providing a comprehensive legal and regulatory framework to govern virtual asset activities and virtual asset service providers (VASPs)" and "developing standards and procedures for establishing and regulating virtual asset activities and VASPs." The draft proposal will be open for public feedback until January 24. If approved, Kenya will join countries such as South Africa and Nigeria that have already implemented cryptocurrency regulation.