Binance, Crypto Chamber back Kenya bill, urge balanced tax policy

Larry Cooke, legal counsel at Binance Africa when he addressed the press in Nairobi on June 11, 2025. [Courtesy]

Global blockchain powerhouse Binance and Kenya’s Virtual Assets Chamber (VAC) have praised the country’s progress on cryptocurrency regulation, describing the recently introduced Virtual Asset Service Provider (VASP) Bill as a major milestone in creating an inclusive and innovation-driven digital economy.

Speaking at a joint press briefing in Nairobi, Binance’s Head of Legal for Africa Larry Cooke and VAC Director Allan Kakai said the bill is a vital first step toward establishing Kenya as a leading crypto hub in Africa, but warned that a punitive tax policy could slow down its momentum.

“The VASP Bill is a welcome move. But if Kenya wants to unlock the full potential of blockchain technology, it must pair regulation with a forward-thinking tax framework,” said Cooke.

The two leaders are in Nairobi for the Kenya Blockchain & Crypto Conference (KBCC), where they are expected to participate in a fireside chat focused on the future of crypto regulation across Africa.

The media roundtable event highlighted growing industry consensus that Kenya is uniquely positioned to lead the continent’s digital asset space, thanks to its tech-savvy youth population and proactive legislative environment. Cooke and Kakai said that balanced tax policy—designed to encourage investment while protecting users—is now the missing piece.

“Kenya is already setting the pace. But punitive taxation could undermine innovation,” said Kakai. “We’ve proposed a model that encourages industry growth, attracts investors, and avoids overburdening small players.”

The duo praised the government for recognizing the urgency of regulating digital assets, noting that regulatory clarity is essential for legitimizing the industry and protecting users from fraud and abuse.

Cooke emphasized that Binance’s mission across Africa is to work collaboratively with local stakeholders, ensuring that regulations are tailored to local realities while drawing from international best practices.

“Our work with Allan and the VAC has been vital,” he said. “We’re here to co-create a digital economy that works for everyone—from Nairobi techpreneurs to rural users accessing financial services for the first time.”

Kakai echoed the sentiment, noting that this is a pivotal moment for Kenya.

“This is Kenya’s crypto moment. The frameworks we’re building here could become the gold standard—not just for Africa, but globally,” he said.

Both Binance and VAC underlined the importance of education in fostering a thriving crypto ecosystem. They called for broader training and awareness-building among users, professionals, and enforcement agencies.

“Education is everything,” said Kakai. “We need to empower lawyers, accountants, regulators—and the average user—to navigate the evolving digital economy safely and effectively.”

Cooke added that Binance is already leading education initiatives across Africa and is committed to scaling up those efforts in Kenya.

The VASP Bill seeks to provide a legal framework for licensing, supervising, and taxing entities dealing in virtual assets, a move seen as long overdue by industry players. Cooke and Kakai emphasized that implementation must be coupled with ongoing dialogue to ensure flexibility and responsiveness as the industry evolves.

“We don’t want rigid rules that stifle innovation,” said Cooke. “We need adaptive policies that grow with the technology.”

As the digital asset economy expands, the partnership between Binance and VAC offers a blueprint for private-public collaboration in crafting policies that balance opportunity with responsibility.

“With the right regulations,” said Kakai, “Kenya can lead Africa—and the world—into the next era of digital finance.”