The Blockchain Association of Kenya (BAK) has announced its commitment to creating the first draft of Kenya’s blockchain legislation. This effort aims to establish clear rules and regulations for the country, joining other nations in embracing the potential of blockchain technology. BAK recently met with the National Assembly Committee on Finance and National Planning to discuss the path forward for regulating digital assets.
During the meeting, BAK shared their challenges and policy needs with the committee. In response, the parliament expressed interest in learning more about the digital asset space and collaborating to regulate it effectively. The association was granted permission to draft the bill and make subsequent alterations, with a two-month timeline to complete the initial draft.
Allan Kakai, the legal and policy director of BAK, emphasized that this collaborative effort aims to develop favorable web3 policies. This unique approach, where industry leaders draft the regulations instead of the parliament, has been lauded as a game changer that will drive investment into the market.
While this development is seen as a significant achievement for Kenya, granting industry stakeholders the authority to shape legislation, some regulators may view it as an excessive delegation of power. Kakai mentioned, “For the first time, a parliamentary committee has directed an association or a stakeholder group to draft a parliamentary bill and bring it to parliament for adoption.”
The upcoming legislation will address various aspects of the blockchain industry, including taxation, licensing, consumer protection, and the establishment of a regulatory sandbox. BAK has actively engaged with parliament in the past, notably opposing the digital asset tax regime.
This latest meeting holds greater significance following the country’s suspension of World Coin and the recent implementation of the Finance Act. Additionally, the adoption of a synthesis paper on digital assets by the G20, led by the Financial Stability Board (FSB) and the International Monetary Fund (IMF), further emphasizes the need for clear regulatory frameworks.
