Some crypto startups have raised concerns about Kenya’s proposed Virtual Asset Service Provider (VASP) bill, conveying the influence distributed to Binance-Linked lobby groups and warning that it could undermine fair competition in the country’s digital asset industry.
According to disclosures seen by Kenya Wall Street, a private think tank called the Virtual Assets Chamber of Commerce (VAC) is included in the regulatory board established under the bill.
Some Kenyan crypto stakeholders have allegedly been made by some cryptographers who claim that the VAC has carried out Binance-sponsored regulatory consultations, which are not independence and act as a proxy for the exchange.
“All regulatory associations by VAC that have happened recently were sponsored by Binance. Will VAC, a non-competitive private consulting entity with ‘magically’ Binance, get a seat on the regulatory side? One stakeholder told Wall Street, Kenya.
Related: Binance’s CZ suggests “function” to distribute codes in the event of death
Binance reportedly pays VAC
The report claims that Binance will pay $6,000 a month for policy advocacy, citing a confidential agreement. This fears that the lobby group will distort Kenya’s crypto rules and block local players with side hustles.
Critics also reportedly pointed to similarities with the VAC’s reported attempts to insert into Rwanda’s regulatory process.
“If an entity with a poor international reputation or a clear conflict of interest becomes our crypto regulator, Kenya will never leave the FATF and the EU greylist,” another stakeholder warned.
In a comment on Kenya Wall Street, VAC Director Basiluogora defended the role of the VAC, pointing to a two-year consultation campaign with the International Monetary Fund (IMF), the Central Bank of Kenya (CBK), and the Parliament.
“The Parliament’s decision to include the VAC as a nominee in the regulatory commission reflects the trust and trust built through this track record of meaningful engagement,” Ogora said.
In particular, Kenya’s new regulatory bodies will include representatives from the Ministry of Finance, the Central Bank of Kenya (CBK), and the Capital Markets Agency (CMA), as well as lawyers and accountants.
Cointelegraph reached out to Binance for comment, but was not responded by publishing.
Related: Tigran Gambaryan officially resigns from Binance after returning to the US
Binance deepens relations with governments around the world
In May, Binance signed a Memorandum of Understanding (MOU) with Kyrgyzstan’s National Investment Institution to introduce domestic crypto infrastructure and blockchain education.
In an interview on April 17th, CEO Richard Tenn revealed that Binance is actively advising several governments on building strategic Bitcoin reserves and creating crypto policies.
“We have actually received quite a lot of approaches from several governments and sovereign funds on the creation of our own crypto reserves,” Ten said.
https://www.youtube.com/watch?v=wye8xsmau8c
Previously, on April 7, former CEO Changpeng Zhao was appointed as an advisor to Pakistan’s newly launched Crypto Council.
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