The IOTA Foundation has welcomed Kenya’s proposed Virtual Asset Service Providers (VASP) Bill, 2024, hailing it as a bold move toward a comprehensive regulatory framework for the country’s fast-evolving digital asset ecosystem. In a detailed response, the foundation emphasized Kenya’s potential to emerge as a hub for responsible blockchain innovation in Africa.
The Virtual Asset Service Providers Bill by @KeTreasury 🇰🇪 is a bold step toward shaping the future of digital assets. 🌍 #IOTA shared feedback to help refine definitions, align with global standards, and unlock #Web3 innovation.
— IOTA (@iota) April 8, 2025
Read more 👇
🔗 https://t.co/Aw9unpTogh pic.twitter.com/jJr4mulkHU
Recognizing the bill as a “key step forward,” the IOTA Foundation’s comments focused on aligning the legislation with international standards and best practices, notably those of the European Union’s Markets in Crypto-Assets (MiCA) regulation.
“Our feedback is centered on building a regulatory framework that balances innovation with security,” said the IOTA Foundation, highlighting the importance of regulatory clarity, consumer protection, and DeFi recognition.
Among its top recommendations, the foundation called for the clarification of token classifications, to prevent ambiguity in interpreting digital assets. It also advocated for transparent regulatory procedures, including well-defined timelines for compliance and accessible appeal mechanisms for service providers.
Security remains a core theme in the Foundation’s feedback. It urges policymakers to strengthen measures around virtual asset custody and cybersecurity, while also ensuring robust consumer protection standards are embedded within the bill.
Importantly, IOTA emphasized the need to recognize the unique nature of decentralized finance (DeFi) platforms and Initial Virtual Asset Offerings (IVAOs), encouraging the bill to reflect the decentralized structure of many blockchain networks.
By adopting these refinements, IOTA believes Kenya can future-proof its digital asset regulations, making the country more attractive to investors and innovators seeking regulatory certainty.
The bill represents a pivotal moment for Kenya’s crypto space, offering a chance to lead the continent in responsible blockchain adoption. With thoughtful adjustments, experts believe Kenya can achieve a balanced framework that drives economic opportunity while maintaining market integrity.
Also Read: IOTA Foundation Pushes for Balanced Finfluencer Regulation Amid Growing Crypto Risks
As the global blockchain industry watches closely, Kenya’s move could set a precedent for crypto legislation in emerging markets—and the IOTA Foundation’s involvement signals growing international interest in shaping Africa’s digital future.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
