PANews reported on January 21 that according to Bloomberg, the Kenyan government is drafting a law requiring virtual asset service providers to set up offices locally to strengthen supervision of the rapidly growing digital asset industry.
The proposed policy does not apply to assets that cannot be transferred, traded or used for payment and investment outside a closed ecosystem, and aims to address gaps in the legal and regulatory framework in the virtual asset sector and address issues such as consumer protection, governance, data privacy and cybersecurity.
Kenya introduced a 3% income tax on digital asset transactions in 2023, but has yet to establish a comprehensive industry regulatory framework. The government hopes to fill the regulatory gap through this move while addressing industry risks such as money laundering, terrorist financing, tax evasion, fraud and cybercrime.
