The Blockchain Association of Kenya (BAK) has launched a community-led draft Virtual Asset Service Provider (VASP) bill to address the rampant cryptocurrency scams defrauding Kenyans. The lack of a regulatory framework has allowed these scams to flourish, prompting the association to take proactive measures. Through extensive public participation, stakeholders are invited to provide feedback on the proposed bill, which aims to protect consumers and legitimize the cryptocurrency industry in Kenya.

Key Points:

  1. Mandate and Purpose: In response to the surge in cryptocurrency-related scams, the National Assembly’s Finance and National Planning Committee tasked the BAK with drafting a regulatory framework. The VASP bill seeks to establish guidelines for virtual asset service providers to safeguard consumers and promote trust in the digital asset industry.
  2. Extended Feedback Period: Due to increased interest from stakeholders, including government agencies, the BAK has extended the feedback period for the draft bill. This allows for broader participation and input from individuals and organizations directly or indirectly affected by the proposed regulations.
  3. Stakeholder Engagement: The BAK emphasizes the importance of stakeholder engagement in shaping the VASP bill. Board Chairman Michael Kimani encourages all interested parties to review the draft and provide constructive feedback. The goal is to address diverse stakeholder interests and concerns comprehensively.
  4. Consumer Protection: The public participation exercise coincides with warnings from the Directorate of Criminal Investigations (DCI) regarding cryptocurrency scams targeting Kenyans. The VASP bill aims to establish consumer protection guidelines and a licensing framework to mitigate fraud and safeguard investors' interests.
  5. Regulatory Challenges: Cryptocurrency activities have largely operated underground since the Central Bank of Kenya's cautionary notice in 2015, hindering legitimate businesses and consumer protection efforts. The proposed bill seeks to address these challenges by providing clear regulatory guidelines and fostering a conducive environment for legitimate cryptocurrency businesses.
  6. Future Outlook: Once finalized, the BAK intends to submit the VASP bill to parliament for consideration. By establishing a robust regulatory framework, Kenya aims to attract legitimate cryptocurrency businesses while protecting consumers from fraudulent schemes.


The initiative led by the Blockchain Association of Kenya underscores the importance of regulatory oversight in the cryptocurrency space. Through collaborative efforts and extensive public participation, the proposed VASP bill aims to combat crypto scams, enhance consumer protection, and promote transparency in the digital asset industry. By engaging stakeholders and addressing regulatory challenges, Kenya seeks to position itself as a leader in responsible cryptocurrency regulation, fostering trust and innovation in the emerging digital economy.

Top of Form