Binance’s connections to a Kenyan cryptocurrency board have sparked unease within the country’s burgeoning crypto scene. On June 29, 2025, concerns emerged that the proposed Virtual Asset Service Providers (VASP) bill might end up playing favorites, potentially granting Binance an outsized influence over new regulatory frameworks. This development has set the local crypto community abuzz with speculation about the future landscape of digital assets in Kenya.
Binance’s Influence in Question
The heart of the matter lies in the perceived cozy relationship between Binance and a key crypto advisory group in Kenya. According to insiders, this group, which advises on the country’s crypto policies, could be swaying the upcoming VASP bill to the advantage of the global crypto exchange giant. The implications? Smaller startups may find themselves at a disadvantage, struggling to compete on an uneven playing field.
Industry experts are cautiously weighing in. Jane Mutua, a Nairobi-based blockchain analyst, remarked, “If Binance wields too much power, it might stifle innovation among local firms, who are already working under challenging conditions.” Her sentiments echo a wider apprehension about the potential dominance of multinational entities over local players. This concern is not unique to Kenya, as seen in our analysis of the UK’s regulatory challenges, where policy delays have left the country trailing behind in crypto regulation.
The VASP Bill: A Double-Edged Sword
The proposed VASP legislation aims to bring order to the somewhat chaotic world of cryptocurrencies in Kenya by establishing clear guidelines for virtual asset service providers. However, not everyone is convinced it will level the playing field. Critics argue that, without careful oversight, the bill could inadvertently cement Binance’s status at the top of the hierarchy.
Here’s the catch: the bill’s provisions might favor well-established players with the resources to comply with stringent regulations, leaving smaller startups gasping for air. “Smaller firms might not have the bandwidth to meet these new requirements,” noted George Kamau, CEO of a local crypto startup. Kamau added that the focus should be on fostering an inclusive environment that nurtures homegrown talent. This echoes sentiments from the EU, where Coinbase’s expansion under MiCA highlights the importance of balanced regulatory frameworks that support both large and small players.
Historical Context and Market Trends
Kenya’s interest in cryptocurrencies has surged in recent years, with Nairobi emerging as a vibrant hub for blockchain innovation. Yet, this growth hasn’t been without its hurdles. Regulatory uncertainty and market volatility have kept many potential investors on the sidelines. The introduction of the VASP bill was supposed to address these issues, providing clarity and encouraging wider adoption.
However, as the debate around Binance’s influence unfolds, there’s a growing concern that the bill might end up being a double-edged sword. While it seeks to protect consumers and prevent illicit activities, it could also stifle the very innovation it intends to promote.
Looking Ahead
As the dust settles, the Kenyan crypto community is left pondering the future. Will the VASP bill empower local innovators, or will it cement Binance’s dominance in the market? The jury’s still out.
For now, the focus remains on ensuring that the legislation serves the broader interests of the Kenyan crypto ecosystem. As stakeholders continue to hash out the details, the hope is that a balanced approach will prevail—one that fosters growth while maintaining fair competition.
In the coming months, as discussions around the bill intensify, all eyes will be on Kenya to see how it navigates this complex terrain. The outcome could set a precedent for other countries balancing local innovation with the influence of global crypto giants. And that, dear readers, is where it gets interesting.
Source
This article is based on: Binance ties to Kenyan crypto board raise monopoly concerns: Report
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
