HomeNewsKenyans Raise Alarm as Binance Gains Power in Crypto Regulation Board

Kenyans Raise Alarm as Binance Gains Power in Crypto Regulation Board

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  • Kenya’s proposed VASP Bill has sparked backlash from local crypto startups over the inclusion of the Binance-linked Virtual Asset Chamber of Commerce (VAC) in the regulatory board, raising fears of unfair influence and monopoly.
  • Critics argue that VAC’s ties to Binance and lack of independence could compromise the integrity of Kenya’s crypto regulations and hinder fair competition.

Concerns are mounting within Kenya’s crypto ecosystem over the country’s proposed Virtual Asset Service Providers (VASP) Bill, which could hand significant influence to a Binance-linked lobby group.

Critics argue the move could tilt the playing field, favoring the global exchange giant while marginalizing local startups and developers.

At the center of the controversy is the Virtual Asset Chamber of Commerce (VAC), a private think tank set to be included on the new regulatory board that will oversee Kenya’s digital asset space if the bill passes. Multiple crypto stakeholders allege that VAC operates with close ties to Binance and lacks the independence required of a regulatory participant.

According to The Kenyan Wall Street, VAC has been running Binance-sponsored regulatory discussions in the country, raising concerns about impartiality. One industry insider voiced frustration, saying,

All regulation convos by VAC that happened recently have been sponsored by Binance. Then VAC, a private consulting entity, with a non-compete with Binance ‘magically’ gets a regulatory seat? How is this fair? How is this constitutional?

Binance’s Alleged Financial Support Raises Alarm

Adding fuel to the debate, VAC is reportedly compensated by Binance at a rate of $6,000 per country per month for policy advocacy, based on a confidential agreement cited in the report. Although Binance is not listed as a partner on VAC’s official website, critics argue that the payment structure points to an undue level of influence.

There are also echoes of similar activity in Rwanda, where VAC allegedly attempted to insert itself into that country’s crypto policy development—further amplifying fears of a regional trend.

“If an entity of poor international reputation or one with clear conflict of interest becomes our crypto regulator, Kenya shall never leave FATF and EU greylists,

warned another Kenyan stakeholder, referencing ongoing concerns about financial transparency and international credibility.

VAC Defends Its Role

In response to the criticism, VAC Director Basil Ogolla defended the organization’s track record, pointing to years of consultations with key institutions such as the International Monetary Fund (IMF), Central Bank of Kenya (CBK), and Parliament. “The National Assembly’s decision to include VAC as a nominator in the regulatory board reflects the trust and confidence built through this track record of meaningful engagement,” Ogolla stated.

The proposed board would also include members from the National Treasury, CBK, Capital Markets Authority (CMA), as well as legal and accounting experts. While this composition may suggest balanced oversight, critics argue that VAC’s inclusion still poses a threat to fair and open crypto regulation in Kenya.

Binance, for its part, has not issued an official comment on the matter.

As Binance continues to build close relationships with governments worldwide, including recent moves in Kyrgyzstan and Pakistan, the situation in Kenya could become a test case for how crypto giants interact with emerging regulatory frameworks — and whether true decentralization can exist under such influence.

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Dennis Grace
Dennis Grace
Peter Macharia is a crypto enthusiast and seasoned writer who specializes in blockchain technology, digital assets, and decentralized finance. He has a talent for simplifying complex concepts and turning them into engaging informative content. With a deep understanding of the industry, Peter delivers clear and precise analysis that resonates with both beginners and experienced crypto enthusiasts.
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