The Departmental Committee on Financial and National Planning is currently engaging a Multi- Agency Task Force on Virtual Assets.

𝐔𝐏𝐃𝐀𝐓𝐄: The Departmental Committee on Financial and National Planning is currently engaging a Multi- Agency Task Force on Virtual Assets.

The membership of the Task Force is drawn from the State Law Office, the State Department for Information, Communication and Technology, and Digital Economy, Central Bank of Kenya, Capital Markets Authority, Kenya Revenue Authority, Sacco Societies Regularly Authority, the National Intelligence Service, Nairobi International Financial Authority and the National Computer and Cybercrimes Coordination Committee.

The Committee is evaluating Kenya’s Proposed Regulatory Framework for Virtual Asset Service Providers (VASPS), ahead of the scheduled public hearings on the Virtual Asset Providers Bill, 2025 which kicks off this afternoon.

The Bill has been necessitated by the need for the establishment of a sound legal and regulatory framework to harness the benefits while addressing the risks presented by Virtual Assets (VAs) and Virtual Asset Service Providers (VASP).

The Committee is actively evaluating Kenya’s Proposed Regulatory Framework for Virtual Asset Service Providers (VASPs). This review precedes scheduled public hearings on the Virtual Asset Providers Bill, 2025. If enacted, Kenya would be among the first African countries to consider such comprehensive legislation in this space.

The Bill is a crucial step towards establishing a robust legal and regulatory framework. Its primary goal is to harness the benefits of Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs) while simultaneously mitigating associated risks. Furthermore, the Bill aims to address potential risks stemming from the misuse of virtual assets and the current absence of a legal or regulatory framework, all while fostering growth and innovation within the VA and VASP sectors.

During the meeting, Members led by the Committee Chairperson Hon. Francis Kuria Kimani have sought to know if the Bill has made stringent provisions to enhance customer protection.

What is a Virtual Asset?

A Virtual Asset is defined as a digital representation of value that can be digitally traded or transferred. These assets can be utilized for payment, trading, or investment purposes. Importantly, this definition excludes digital representations of fiat currencies, securities, or other financial assets. It's crucial to note that Virtual Assets are not currently considered legal tender.