The Blockchain Association of Kenya (BAK) recently organized the inaugural Digital Assets Policy Safari (DAPS), a groundbreaking event aimed at shaping Kenya’s National Digital Assets Policy. Attended by a diverse group of stakeholders such as Regulatory Authorities, Financial Institutions, Entrepreneurs, Startups, Legal and Compliance Experts, Academia, Investors, Blockchain Developers, Non-Governmental Organizations, and Media representatives, the session aimed to foster education, awareness, and trust within the digital assets ecosystem.
Nadeem Anjarwalla, Binance Director for East and West Africa, emphasized the importance of creating an enabling environment through appropriate regulation. He highlighted that the right regulations could fuel industry growth, space development, and innovation. This discussion gained significance in light of Kenya’s Finance Bill 2023, which introduced a Digital Asset Tax, effective from September 1, 2023, raising concerns and discussions among experts.
During the event, experts like Evelyn Wanjiru, a Blockchain Legal Consultant; Fred Ogutu, a Tax Lawyer and Senior Associate at Bowmans; Bill Okello, Head of Legal and Regulatory Compliance at Sanduk; and Allan Kakai, Director of Legal and Policy Affairs at BAK, delved into the proposed Digital Asset Tax outlined in the Finance Act 2023. Allan Kakai urged the government to implement specific crypto regulations promptly, expressing concerns about the potential adverse effects of the tax on the industry.
Kakai highlighted the challenges faced in onboarding digital assets into regulatory sandboxes, citing the complexity and novelty of the technology as reasons for the delay. However, embracing innovations in the crypto sector and creating friendly tax compliance could open avenues for more clients, job opportunities, and increased income for Kenya.
The DAPS submissions included recommendations to strengthen rules on crypto lending and consider regulatory sandboxes. Recognizing stablecoins as valid forms of payment were also discussed, potentially expanding the digital assets landscape. The participants engaged in focused group discussions, drafting a mock crypto bill, formulating strategies for engaging with regulators, and developing a framework for consumer protection and education.
Esteemed partners like EthSafari, Sheria Online, Binusu, and Chasing Mavericks supported the DAPS initiative. The event served as a significant step toward creating a conducive environment for digital assets in Kenya, emphasizing collaboration, education, and effective regulation as key drivers of growth and innovation in the sector.