Nairobi, June 1 -- Kenya's digital asset economy is expanding rapidly, but the rules that govern it are still taking shape.

As adoption accelerates, the real challenge is no longer whether to regulate the sector but whether tax policy can keep pace in a way that supports both compliance and continued market development.

Get it wrong, and the cost may be not only lost revenue but also reduced competitiveness in one of the fastest-growing segments of digital finance.

Kenya's leadership in digital payments, anchored by innovations such as M-Pesa, created the foundation for a broader expansion in digital financial services. Virtual assets, the regulatory term for what are broadly known as digital assets, are now part of that evolution.

Ac...