The Blockchain Association of Kenya (BAK) has opted to delay the presentation of a draft bill aimed at addressing the surge in cryptocurrency fraud within the nation.
In a statement issued on Monday, February 19, the digital asset industry advocacy group explained that the decision to postpone the submission of the Virtual Asset Service Provider (VASP) bill to the National Assembly was made to facilitate further engagement with various stakeholders and interested parties.
BAK was tasked by the Finance and National Planning Committee to develop a regulatory framework for the cryptocurrency sector due to the absence of such regulations, which has led to the proliferation of dubious cryptocurrency scams defrauding Kenyans of their hard-earned money.
Initially scheduled for submission to the committee on February 14, 2023, the bill’s delivery has been deferred owing to the increased interest from new stakeholders, including government agencies and others impacted by elements of the proposed legislation.
“The association convened a stakeholder breakfast at the Sankara hotel on February 16th, during which the Executive Board announced an extension of the feedback period to a later date in the future,” BAK announced.
The association is urging stakeholders to review and provide input on the bill before its submission to the August House.
“The Blockchain Association of Kenya aims to present the bill to parliament promptly upon its completion to safeguard Kenyan citizens and attract legitimate cryptocurrency enterprises to the country. Meanwhile, the advocacy group encourages its community and other interested parties, such as government agencies, international development organizations, and the private sector, to engage in forthcoming forums and workshops aimed at educating and raising awareness about the bill’s implications,” BAK emphasized.
During the breakfast meeting, Chairman of the Board Michael Kimani emphasized, “The Virtual Asset Service Provider bill represents a significant step towards curbing the rampant cryptocurrency-related scams that exploit and defraud Kenyans of millions of shillings due to the absence of protective frameworks.”
Instances of Kenyans falling victim to unscrupulous cryptocurrency operators and losing their investments have been increasingly reported in recent years.
Last week, the Directorate of Criminal Investigations (DCI) disclosed ongoing investigations into numerous cases of Kenyans being enticed to participate in online cryptocurrency investment platforms, only to suffer financial losses at the hands of fraudsters.
The agency cautioned Kenyans to exercise vigilance when dealing with suspicious investment schemes.
