Blockchain and digital assets players urge gov't to strike balance in sector regulation

The players who converged in Nairobi for the 2nd Blockchain and Crypto Conference want the government to exercise caution so as not to stifle the sector.

"We have seen in the last 10 years that in the crypto space in particular, there have been some bad actors, and that is the case for any new technology that comes into the market," said Sandra Roh, CEO of the Global Blockchain Business Council.

Roh says the regulation will cut out rogue players in the sector.

"If there's money to be made, you will have some bad actors coming in, which means, yes, we do need some regulatory guidelines. However, one must be very careful about not restricting innovation and business as well," added Roh 

Kenya seeks to join the likes of Nigeria and South Africa which have already put in place regulations to manage and regulate the industry 

The Blockchain Association of Kenya (BAK) had in March 2024 submitted the Virtual Assets Service Provider (VASP) draft Bill to the National Assembly Finance and Planning Committee for consideration.

"Kenya is midway because at least there's a bill that has been tabled in front of a parliamentary committee. And beyond that, there was also engagement from the National Treasury to set up our multi-agency Task Force to regulate digital assets that countries like Nigeria beat... So the regulatory space in Africa is not even but I'll take Kenyans midway in that process," said Felix Macharia, Founder and CEO of Kotani Pay.

Emmanuel Kata Kimeu, Secretary  ICT Security and Audit Control at the state Department of ICT says the government has already stepped measures to support the sector through improved connectivity and digital infrastructure.

"And now we are here to discuss blockchain and see how we can support both private and public organizations to be able to build capacity to develop models that will work for Kenya and Africa. We are ensuring connectivity across Kenya by rolling out 100,000 fibre," said Kimeu.

Kenya is estimated to have at least 500 to 1000 blockchain developers despite being an emerging and new market.