Kenya’s progress toward regulating digital assets has received a nod from global cryptocurrency exchange Binance and the Virtual Assets Chamber (VAC), which urged the government to revisit tax policies to safeguard innovation and economic growth.

During a joint media address in Nairobi, Binance’s Head of Legal for Africa, Larry Cooke, and VAC Director Allan Kakai expressed their support for the proposed Virtual Asset Service Provider (VASP) Bill, hailing it as a step in the right direction.

However, they raised red flags over Kenya’s existing tax framework, warning that it could stifle the very progress the legislation seeks to achieve.

“We’ve proposed a model that encourages growth without overburdening users,” said Cooke, who added that, “Kenya can lead the continent with smart, enabling policies.”

The two officials, who will also be addressing delegates at the upcoming Kenya Blockchain & Crypto Conference, outlined a vision where regulatory clarity meets innovation.

They stressed the importance of crafting an ecosystem that does not just regulate but also promotes responsible growth.

Kakai, reflecting on the broader economic potential, remarked, “With the right regulations, those that promote innovation, attract investment, and expand economic opportunity, Kenya can lead the continent.”

He also pointed to the possible ripple effects of progressive digital finance policies, stating, “Positive policies will unlock job creation, increase government revenue, and bring more traditional finance players into the space.”

Cooke and Kakai further called on Kenyan regulators to engage directly with stakeholders across the digital finance spectrum, from fintech startups to legacy financial institutions.

They advocated for a more inclusive approach—one that fosters dialogue, builds understanding, and ensures sustainable development.

The duo underscored the urgency of educating the public and policymakers alike, asserting that collaboration is the cornerstone of Kenya’s potential leadership in Africa’s digital finance frontier.