Golden Finance reports that the Kenyan government is drafting a law that would require virtual asset service providers to set up local offices to strengthen supervision of the rapidly growing digital asset industry. The proposed policy does not apply to assets that cannot be transferred, traded or used for payments and investments outside closed ecosystems, and is intended to address gaps in the legal and regulatory framework in the field of virtual assets and address consumer protection, governance, data privacy and cybersecurity etc. questions. Kenya introduced a 3% income tax on digital asset transactions in 2023, but has yet to establish a comprehensive industry regulatory framework. Through this move, the government hopes to fill regulatory gaps while addressing industry risks such as money laundering, terrorist financing, tax evasion, fraud and cybercrime.