The Crypto Bill: Fix or Fumble?

Bonsoir 👋🏿

It's Brian from The Kenyan Wall Street 

In today's newsletter, crypto lobbyists met the Treasury officials and gave them a list of mistakes with their approach on regulation.

This and more business stories today ;

TECH & REGULATION

The Crypto Bill: Fix or Fumble?

The Crypto industry is up in arms over a 3% Digital Asset Tax (DAT), arguing it’s way too high compared to Indonesia’s 0.1%–0.2% and could scare off investors.

The proposed Virtual Asset Service Provider (VASP) Bill is also raising eyebrows for being blurry on regulatory roles, licensing fees, and stablecoin oversight. Industry players want the Central Bank (CBK) and Capital Markets Authority (CMA) to have defined roles to avoid bureaucratic chaos.

Startups fear the bill’s steep penalties could push innovation underground instead of nurturing it. Peer-to-peer (P2P) crypto traders might get caught in regulatory limbo, making informal transactions the new norm. Moreover, Crypto influencers could even find themselves accidentally outlawed if the bill isn’t tweaked or made full proof. Here is a detailed report.

Today's Poll

Yesterday's Poll Results

Would you invest in a Money Market Fund?  

🟩🟩🟩🟩🟩🟩 Yes (84.09%)

🟨⬜️⬜️⬜️⬜️⬜️ No (15.91%)

CAPITAL MARKETS

CMA Puts ‘Trade Sense’ on Pause for Rulebook Violations

Kenya’s Capital Markets Authority (CMA) has benched money manager Trade Sense Limited for 90 days, citing lapses in governance, finance, and anti-money laundering compliance.

The watchdog says it has been nudging Trade Sense to clean up its act since 2023, but patience has run out. Investors' funds remain untouched—by regulation, money managers like Trade Sense only get trading rights, not direct access to clients’ cash. While Trade Sense sits in regulatory timeout, CMA will decide whether to lift the suspension or take further action. The message to the industry is clear: play by the rules, or risk getting sidelined. More details here…

AUDIT

Kenya’s Embassies: Leaky Roofs, Lost Papers, and Low Morale

Our diplomatic missions are in shambles, with crumbling buildings, delayed funding, and missing ownership documents, according to the Auditor-General’s latest report.

Some embassies, like those in Abuja, Berlin, and Paris, are falling apart—think leaky roofs, cracked walls, and even basement flooding. Staff morale is plummeting due to late salary payments and allowances, while suppliers are also left hanging. In Saudi Arabia and Israel, Kenya owns properties but lacks proper proof of ownership, making them diplomatic ghost assets. With reputation risks mounting, it seems Kenya’s foreign affairs department needs more than just a fresh coat of paint. Read more in this article…

More Stories:

• Public Finance. The Kenya Revenue Authority (KRA) has waived KSh 140billion in penalties, interest and fines for over 1.9 million taxpayers in the ongoing Tax Amnesty Program.

• Mobility. Ride-hailing company Bolt has clarified that it fully covers the cost of discounts offered to passengers so that drivers receive the full fare before commission.

OPINION  

Artificial Intelligence (AI) and AI-agents are a Game-Changer for Cybersecurity

Anna Collard writes…

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Have a lovely evening!