Kenyan crypto startups are raising alarms over potential regulatory bias, as a Binance-linked group gains influence in shaping the country’s upcoming digital asset laws. The controversy surrounds the Virtual Asset Chamber of Commerce (VAC), which is slated to join the regulatory board under Kenya’s proposed Virtual Asset Service Providers (VASP) Bill.
VAC’s Alleged Links to Binance Raise Red Flags
According to reports by The Kenyan Wall Street, the VAC has hosted Binance-sponsored regulatory events and is now poised to hold a seat on the board that will guide crypto oversight in Kenya. Critics argue that VAC lacks independence and functions as a proxy for Binance’s interests.
“All recent VAC regulation conversations were Binance-sponsored. How is it fair or constitutional to grant VAC a regulatory seat?” one stakeholder reportedly asked.
The concerns stem from a confidential agreement suggesting that Binance pays VAC $6,000 per country per month for policy advocacy—a deal that could create a serious conflict of interest in regulatory matters.
Crypto Startups Warn Against Biased Regulation
Industry insiders fear that if VAC influences the final VASP framework, it could skew policies in Binance’s favor, sidelining local exchanges and developers.
One stakeholder warned that if regulatory power is handed to a “non-neutral entity,” Kenya could risk remaining on the FATF and EU greylists, which monitor nations for financial compliance deficiencies.
VAC Defends Its Role, Citing Government Collaboration
In response, VAC Director Basil Ogolla defended the organization’s inclusion in the process. He highlighted VAC’s two-year track record of engaging with the IMF, Central Bank of Kenya, and Kenyan Parliament, arguing that its advisory role is based on trust, not favoritism.
“The National Assembly’s decision reflects confidence in our engagement,” Ogolla said.
The new regulatory board is expected to include representatives from the National Treasury, Central Bank of Kenya (CBK), Capital Markets Authority (CMA), legal, and accounting sectors—in addition to VAC.
Binance’s Global Regulatory Influence Grows
This isn’t an isolated case. Binance has recently strengthened ties with governments in Kyrgyzstan and Pakistan, and CEO Richard Teng confirmed in April that Binance is advising several governments on crypto reserves and regulatory frameworks.
As Binance deepens its involvement in national crypto policies, concerns over market concentration and regulatory capture are likely to increase in emerging economies like Kenya.
Disclaimer
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