Several crypto startups in Kenya are voicing concerns over the proposed Virtual Asset Service Providers (VASP) Bill, fearing it could give disproportionate influence to a lobby group closely linked to Binance, potentially skewing new regulations in the exchange’s favor.
According to The Kenyan Wall Street, a private organization called the Virtual Asset Chamber of Commerce (VAC) is set to have a seat on the regulatory board established under the draft bill. VAC has reportedly hosted a series of Binance-sponsored regulatory discussions, raising questions about its independence and impartiality.
Industry stakeholders argue that it is unfair and unconstitutional for a private entity with clear financial ties to Binance to be involved in shaping national crypto laws. Leaked information suggests that Binance pays VAC approximately $6,000 per country each month for policy advocacy, intensifying fears that regulations may be crafted to favor Binance while sidelining local players.
“If a regulator with clear conflicts of interest or a poor international reputation takes the lead, Kenya risks remaining on the FATF and EU grey lists,” one stakeholder warned.
In response to the criticism, VAC Director Basil Ogolla defended the organization’s role, citing two years of engagement with the International Monetary Fund (IMF), the Central Bank of Kenya (CBK), and Parliament. He argued that VAC’s inclusion reflects trust earned through consistent and constructive dialogue.
The proposed regulatory board will also include representatives from the National Treasury, the CBK, the Capital Markets Authority (CMA), a lawyer, and an independent accountant.
Meanwhile, Binance continues to strengthen ties with governments worldwide. Recently, the exchange signed a memorandum of understanding with Kyrgyzstan’s National Agency for Investments to support crypto payments and blockchain education. Binance has also been advising various governments on crypto policy and reserve strategies. Notably, former CEO Changpeng Zhao was appointed as an advisor to Pakistan’s new Crypto Council earlier this year.
