Binance is rooting for digital asset regulation and financial literacy in Kenya, in a move it says will foster responsible adoption in the land.
Binance is supporting the controversial Virtual Asset Service Providers (VASP) Bill, a bill proposed by the Kenyan government and stakeholders to regulate digital assets and curb fraud in the country.
“The Virtual Asset Service Providers Bill is a game-changer, but more than that, it’s a symbol of Kenya’s willingness to lead Africa in responsible innovation,” said Binance Africa’s Legal Counsel Larry Cooke, “We have been working closely with regulators, parliamentarians, and educators because the crypto ecosystem cannot thrive without trust.”
Cooke was speaking at a Binance conference held in Nairobi. The new Virtual Asset Service Providers Bill, currently under review by Parliament, seeks to formally recognize digital assets and provide a licensing framework for companies such as Binance to operate legally in Kenya.
Industry leaders view the bill as a milestone for fostering trust, consumer protection, and innovation in the digital economy, but some innovators view this as the government’s plan to interfere in a sector so early and so nascent.
“It’s too early to talk about regulation without even providing a great environment for digital assets to take root in the country. The end goal of regulation in Kenya is taxation. Nothing good comes out of it but just taxes. The Kenyan government wants to tax everything to death without any implicit solutions,” said digital asset innovator and trader who didn’t want to be named. “We have used platforms like Binance for years. We have built awareness in our trader communities. Regulation will slow the sector down.”
However, Binance is in support of cryptocurrency regulation across Africa and has been partnering with governments, regulators, and local communities. Binance has actively engaged with regulatory bodies in countries such as Nigeria, Kenya, South Africa, Uganda, and francophone nations like Côte d’Ivoire.
In Nigeria, for example, Binance collaborated with regulators during early policy formation and later introduced features like stronger user verification and transaction tracking tools to align with emerging compliance standards.
Binance has conducted workshops for regulators and police departments in countries like Uganda, Ghana, and Cameroon, educating them on how to investigate crypto-related crimes and trace blockchain transactions. These initiatives have helped demystify the sector for public institutions while equipping them with tools to ensure user safety and tackle illicit activity.
Binance has also collaborated with government agencies in francophone Africa to pilot blockchain applications in public services and financial inclusion initiatives.
Allan Kakai, a policy advocate representing the Virtual Asset Chamber, explained the importance of regulatory dialogue.
“One thing the Virtual Asset Chamber was very passionate about is identifying the key regulators and trying to build a bridge for an audience where we can have dialogue,” he said. “The Capital Markets Authority (CMA) has been particularly forward-thinking through its Regulatory Sandbox. That environment of dialogue and experimentation is exactly how we’ve made progress toward what is now the Virtual Asset Service Providers Bill.”
Kakai noted that as of two years ago, no regulations existed around virtual assets in Kenya. However, ongoing engagement with CMA, the Central Bank of Kenya (CBK), and Parliament has resulted in meaningful developments, including the possibility for crypto firms to obtain licenses, collaborate with financial institutions, and protect consumer interests.
“When you’re dealing with people’s money, there needs to be a safety net. The bill makes sure Kenyans can invest without losing their money. It’s a win for regulators, a win for the people, and a win for investors,” Kakai added.
