News reports have surfaced regarding Binance’s links to the Kenyan crypto regulatory board, sparking worries about a potential monopoly. Certain crypto ventures in Kenya have expressed apprehension over the proposed Virtual Asset Service Providers (VASP) Bill. They argue it could provide excessive power to a Binance-associated consortium, potentially disrupting fair play in the country’s digital asset sector.
The Kenyan Wall Street disclosed that a private consortium named the Virtual Asset Chamber of Commerce (VAC) would be a part of the regulatory board formed under the draft law. Critics argue that VAC, having orchestrated Binance-funded regulatory discussions, lacks impartiality and essentially serves as a Binance surrogate.
Recently, Binance has allegedly been sponsoring VAC’s regulatory dialogues. Critics have questioned the fairness and constitutionality of VAC’s inclusion in the regulatory board, given its close ties with Binance. The report alleges that Binance pays VAC $6,000 monthly per country for policy advocacy, according to a confidential agreement. This has led to fears that the consortium could manipulate Kenya’s crypto regulations to favour Binance, sidelining local entities.
Stakeholders have also drawn parallels with VAC’s alleged attempts to wedge itself into Rwanda’s regulatory process. The director of VAC, Basil Ogolla, defended the organization’s role, citing its two-year campaign of consultations with the International Monetary Fund (IMF), Central Bank of Kenya (CBK), and Parliament. He stated that VAC’s inclusion in the regulatory board signifies the trust and credibility it has amassed through its active engagement.
Significantly, the new regulatory body of Kenya will also encompass representatives from the National Treasury, the Central Bank of Kenya (CBK), and the Capital Markets Authority (CMA), alongside a lawyer and an accountant. Binance has yet to comment on the matter.
In recent news, Binance has been forging partnerships with governments worldwide. In May, it signed a memorandum of understanding (MOU) with Kyrgyzstan’s National Agency for Investments to incorporate crypto payment infrastructure and blockchain education in the country. CEO Richard Teng announced that Binance is actively advising several governments on establishing strategic Bitcoin reserves and shaping crypto policies.
