Meanwhile, Binance, the world’s largest cryptocurrency exchange is putting its energy into lobbying governments to help them develop strategic Bitcoin reserves and develop responsible crypto policies. This participation leads to issues with conflicts of interest and undue influence in regulatory processes. Richard Teng, Binance's CEO, revealed this initiative in an interview on April 17, stating that the company has received numerous approaches from governments and sovereign wealth funds seeking guidance on establishing their own crypto reserves.

Binance’s global influence can be found all the way to Africa, where its impact on regulatory discussions in countries like Kenya has led to outrage. The exchange is pushing the regulatory discussions through the VASP Bill. Per claims by Kenya crypto stakeholders, the VAC—which is primarily funded by Binance—is brokering these conversations.

Concerns Over Influence in Kenya's Crypto Regulation

At the forefront of this regulatory process is international cryptocurrency exchange Binance. This has caused apprehension and confusion about its ability to shape the overall direction of crypto regulation in the country. Opponents of VAC contend that VAC is not truly independent. They fear it functions as a regulatory proxy for Binance, and that would lead to regulations that serve Binance’s interests. Notably, Binance's website is not listed as a partner on VAC's website.

The Kenyan crypto startups that have been at the forefront of raising alarm over the proposal VASP Bill. They caution that it would provide outsized power to a special-interest lobby group affiliated with Binance. This new Kenyan regulatory body would include representatives from the National Treasury, Central Bank of Kenya (CBK), and Capital Markets Authority (CMA). Joining will be the adviser’s regular lawyer and accountant.

"All regulation convos by VAC that happened recently have been sponsored by Binance. Then VAC, a private consulting entity, with a non-compete with Binance 'magically' gets a regulatory seat? How is this fair? How is this constitutional?" - unnamed stakeholder

Global Expansion and Regulatory Scrutiny

Binance is undergoing an incredible expansion into every possible global market. In Kyrgyzstan, it has worked alongside the National Agency for Investments to implement crypto payment infrastructure and increase blockchain educational opportunities. These moves underscore Binance’s larger global ambitions to be the primary player in all things crypto.

This expansion has recently attracted regulatory scrutiny. Binance’s recently former Global Head of Financial Crime Compliance, Tigran Gambaryan, legally returned from the US and officially stepped down from Binance. VAC has come under fire for attempting to insert itself into Rwanda’s regulatory process. Critics argue that this strategy is just a carbon copy of its playbook abroad.

"We have actually received quite a number of approaches by a few governments and sovereign wealth funds on the establishment of their own crypto reserves." - Richard Teng

Leadership Changes and Advisory Roles

Adding another layer to Binance's evolving role in the crypto world, Changpeng Zhao, Binance's former CEO, has taken on an advisory role with Pakistan's Crypto Council. Combined with other recent moves, this shift places Binance even more firmly in control of the narrative to set crypto regulations around the world.

"The National Assembly’s decision to include VAC as a nominator in the regulatory board reflects the trust and confidence built through this track record of meaningful engagement." - Basil Ogolla

"If an entity of poor international reputation or one with clear conflict of interest becomes our crypto regulator, Kenya shall never leave FATF [Financial Action Task Force] and EU greylists." - unnamed stakeholder