Binance to address Kenyans on compliance next week - Coinfea

Leading crypto exchange Binance is set to address Kenyans next week. The exchange confirmed that it will host a live X Spaces session next week in partnership with the AML Association of Kenya.

This development was announced after several grievances among residents after Binance froze several crypto accounts belonging to locals. According to a statement by comedian Eddie Butita, Binance will go live on X Spaces with the AML Association of Kenya to clarify the facts and address compliance concerns. The exchange’s compliance with directives from law enforcement agencies sparked discussions about customer rights, regulation, and overreach.

Binance set to address Kenyans next week

According to reports, some affected traders mentioned that their Binance accounts have been frozen for more than 2 months at the behest of DCI, with no charges laid, no court order issued, and no timetable for resolving the matter. “No complainant identified. No formal charges. No timeline given,” the trader posted on X. “Funds remain inaccessible. Meanwhile, real life doesn’t pause. Bills are piling up. Debt is growing.”

The public mood has soured significantly, with a boycott gaining steam under the hashtag #BinanceUnmasked. These actions coincide with developments in the country’s legal context, such as the 2025 Virtual Assets Service Provider Act, as well as changes to the Proceeds of Crime and Anti-Money Laundering Act, which classify cryptocurrency platforms as reporting entities. Meanwhile, Binance argues that it works with local law enforcement agencies, as such measures are consistent with existing regulations.

Kenya ranks among the most dynamic and active countries in Africa for crypto activities. Millions of users use platforms such as Binance to make transactions and remittances, and to save money. The current tensions highlight the growing pains of rapid adoption and the need to meet stricter oversight. The comments under Eddie Bututa’s X post are negative at this point. Binance’s partnership with the Kenyan authorities has scarred its reputation among traders.

The National Treasury also mentioned that the submissions of all the interested parties regarding the Draft VASP Regulations 2026 have been received. This will set the ball rolling for the completion of the entire process. It is pertinent to mention here that the Draft VASP Regulations are meant to bring into effect the provisions of the Virtual Asset Service Providers Act passed in the year 2025.

Some of the major recommendations in this regard include imposing strict capital requirements, which could be as high as Ksh 500 million for stablecoin issuers; stringent AML/CFT and consumer protection guidelines; asset isolation; and restrictions on market manipulation. Supervision of the entities is to be carried out through collaboration between the CBK and the CMA.