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The IOTA Foundation has recently shared its feedback on Kenya’s proposed Virtual Asset Service Providers (VASP) Bill, 2024, applauding it as a significant step toward establishing a progressive regulatory environment for the country’s growing digital asset ecosystem. This bill, which aims to create a clear and consistent framework for virtual assets, could help position Kenya as a leader in blockchain innovation across Africa.
The IOTA Foundation emphasized the importance of aligning the bill with international standards, particularly with frameworks like the European Union’s MiCA regulation. A key point raised was the need to refine definitions of tokens to ensure they match global best practices. By doing so, Kenya can avoid ambiguity and create a transparent environment that fosters confidence among both local and international investors.
One of the foundation’s major recommendations is to enhance regulatory processes. The IOTA Foundation advocates for clear timelines for compliance and an effective appeal process to ensure fairness and accountability in enforcement. This would offer regulatory certainty to businesses and stakeholders in Kenya’s digital asset market, helping them navigate the evolving landscape with greater ease.
Security is another critical area of focus in the feedback. The IOTA Foundation stressed the importance of robust measures for virtual asset custody, cybersecurity, and consumer protection. By prioritizing security, Kenya can reduce risks and ensure that consumers are well protected as the digital asset market grows.
Lastly, the IOTA Foundation highlighted the need for the bill to recognize the realities of decentralized finance (DeFi). Specifically, it recommended that decentralized platforms and Initial Virtual Asset Offerings (IVAs) be properly addressed, as these are increasingly shaping the digital asset landscape.
Also Read: IOTA Supports FATF’s AML/CFT Reforms for Better Compliance & Inclusion
By incorporating these recommendations, Kenya can create a future-proof regulatory framework that not only protects consumers but also promotes innovation and market integrity, setting the stage for sustainable growth in its blockchain sector.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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