Kenya proposes joint oversight by five agencies to regulate crypto sector

Kenya is advancing towards the formal regulation of its fast-growing cryptocurrency industry, following strong backing from a parliamentary committee. According to a report by Eastleigh Voice, the National Assembly’s Finance Committee has endorsed a proposal for five government agencies to jointly oversee the operations of virtual asset service providers (VASPs).

This move marks a significant milestone in the country’s effort to create a coordinated and comprehensive approach to managing digital assets. The committee’s recommendation paves the way for broader oversight, which is expected to enhance transparency, protect consumers, and curb the risks associated with unregulated crypto markets.

The proposed joint regulatory framework reflects growing recognition of the importance of safeguarding the financial system while fostering innovation. If implemented, it would establish a multi-agency task force to supervise cryptocurrency exchanges, wallet providers, and other VASPs, ensuring they comply with financial, anti-money laundering, and data protection standards.

Cryptocurrency plays an increasingly vital role in Kenya, where it is widely used for remittances, peer-to-peer trading, and small business transactions. As crypto adoption rises, the lack of regulation has posed challenges, making this latest step a timely and necessary response.