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Binance’s Link to Kenya’s Digital Assets Council Raises Monopoly Concerns

June 30, 2025




Startups Raise Alarm Over Kenya’s Proposed VASP Bill

Several cryptocurrency startups in Kenya have expressed concern over the country’s proposed Virtual Asset Service Providers (VASP) bill. They warn that it could grant excessive influence to a lobbying group linked to Binance, threatening the principle of fair competition in Kenya’s digital assets sector.

Role of Virtual Assets Chamber (VAC) in Regulation

According to The Kenyan Wall Street, a private research center called the Virtual Assets Chamber (VAC) is set to be included in the regulatory council established by the bill.

Some crypto stakeholders claim that VAC has been conducting regulatory discussions sponsored by Binance and lacks independence, effectively acting as a front for the platform.

One stakeholder told the newspaper:
"All recent regulatory talks held by VAC were sponsored by Binance. Then VAC—a private advisory entity with a non-compete agreement with Binance—‘magically’ gains a regulatory seat? How is this fair? How is this constitutional?"

Binance’s Alleged Monthly Payments to VAC

The report claims Binance pays VAC $6,000 per country per month for lobbying and policy efforts, citing a confidential agreement. This has fueled fears that the group may influence regulations in Binance’s favor at the expense of local players.

VAC’s Transparency and Regional Influence

  • Binance is not listed as a partner on VAC’s official website.

  • Critics also note similarities with reports of VAC’s attempts to intervene in regulatory processes in Rwanda.

A stakeholder commented:
"If an internationally controversial entity or clear conflict of interest becomes our crypto regulator, Kenya will never exit the FATF or EU grey lists."

VAC’s Defense and Regulatory Council Composition

In response, Basil Ogola, VAC’s director, defended the chamber’s role, citing its track record of consultations with the IMF, Central Bank of Kenya (CBK), and Parliament over the past two years.

Ogola stated:
"The National Assembly’s decision to include VAC as a nominating body in the regulatory council reflects the trust built through this serious engagement process."

The new regulatory body will also include representatives from Kenya’s Ministry of Finance, Central Bank, Capital Markets Authority, along with a lawyer and an accountant.

Binance’s Global Government Relations Expansion

  • In May, Binance signed an MoU with Kyrgyzstan’s National Investment Authority to develop crypto payment infrastructure and promote blockchain education.

  • In an April 17 interview, CEO Richard Teng revealed Binance is advising several governments on building strategic Bitcoin reserves and shaping digital asset policies.

  • Teng said:
    "We have already received requests from governments and sovereign wealth funds about establishing their own crypto reserves."

  • Earlier in April, former Binance CEO Changpeng Zhao was appointed advisor to Pakistan’s newly launched Digital Assets Council, overseeing the country’s blockchain and digital asset initiatives.

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