Kenya VASP Bill Sparks Binance Monopoly Fears

Kenya’s VASP Bill and Binance-Linked VAC Influence

Kenya’s proposed Virtual Asset Service Providers (VASP) Bill aims to establish a dedicated authority to oversee digital asset activities. Crypto startups, however, warn that embedding the Virtual Asset Chamber of Commerce (VAC)—a private lobby group reportedly funded by Binance—on the regulatory board could tilt new rules in the exchange’s favor.

Lobbying Influence and Monopoly Risks

Under the draft law, VAC is named as one of five private-sector nominators to the Virtual Assets Regulatory Authority. Reports suggest Binance pays VAC a retainer for policy advocacy, raising fears that the VASP Bill may grant disproportionate influence to Binance and undermine fair competition in Kenya’s burgeoning crypto market.

Stakeholder Reactions

Local crypto entrepreneurs have voiced strong objections, questioning how a consulting entity with close Binance ties can hold a regulatory seat. Critics argue this arrangement risks regulatory capture and may stifle smaller, home-grown firms.

Regulatory Framework and Safeguards

The proposed authority will also include representatives from the National Treasury, Central Bank of Kenya and Capital Markets Authority, alongside a lawyer and an accountant. Proponents of VAC’s inclusion point to its two-year track record of consultations with the IMF, CBK and Parliament as evidence of its credibility.

Outlook and Next Steps

As the bill advances through committee review, amendments could be introduced to tighten conflict-of-interest rules or remove private-sector nominators altogether. Kenyan startups continue to lobby for transparent governance and public scrutiny of all advisory contracts.