IOTA Foundation’s Input on Kenya’s VASPs Bill
TL;DR:
The IOTA Foundation has shared its insights on Kenya’s Virtual Asset Service Providers Bill, 2024, suggesting improvements in token classifications, cybersecurity protocols, and regulatory processes. Their feedback aims to enhance clarity, consumer protection, and adherence to global standards for a thriving digital asset landscape in Kenya.
The IOTA Foundation has submitted a comprehensive review of Kenya’s proposed Virtual Asset Service Providers Bill, 2024, acknowledging it as a significant stride towards establishing a transparent and progressive regulatory framework for the nation’s digital asset sector. By refining definitions and aligning with international best practices, Kenya has the opportunity to set a precedent for responsible blockchain innovation.
The foundation’s suggestions center around ensuring regulatory coherence, safeguarding consumer interests, and nurturing an ecosystem conducive to innovation and security. Key recommendations include:
- Clarifying token definitions to mirror global norms, like the EU’s MiCA regulation.
- Establishing equitable regulatory procedures, including defined compliance timelines and avenues for appeals.
- Improving security protocols for virtual asset storage, cybersecurity measures, and consumer safeguarding.
- Acknowledging the realities of decentralized finance (DeFi), especially in relation to decentralized platforms and Initial Virtual Asset Offerings.
By incorporating these enhancements, Kenya can develop a resilient and adaptable regulatory framework that fosters investment, technological advancement, and upholds market integrity.