Kenya crypto regulation moves forward as Parliament passes the VASP bill, requiring licensing and oversight for all cryptocurrency service providers.
According to a local newspaper on October 13, the Kenyan Parliament passed the groundbreaking Virtual Asset Service Providers Bill, 2025, and forwarded it to President William Ruto for his expected signature.
The legislation requires any firm providing cryptocurrency services, from exchanges to wallet providers, to obtain a license and submit to oversight by a coordinated duo of existing regulators: the Central Bank of Kenya and the Capital Markets Authority.
Kenya Crypto Regulation Affects Virtual Asset Service Providers
The bill clearly outlines who falls under its scope. A virtual asset service provider refers to a share-limited company—either locally incorporated or a foreign entity registered under Kenyan law—authorized to offer cryptocurrency services.
For licensed organizations, the framework mandates a set of operational measures designed to build trust. VASPs are expected to maintain strong safeguards for client assets, reliable insurance coverage, and bank accounts in Kenya. They must also establish formal conflict-of-interest policies and maintain detailed transaction records.
Implementing the New Kenya Crypto Regulations
To implement the new Kenya Crypto Regulations, the CBK and CMA have broad authority to inspect, oversee, and discipline noncompliant operators. The framework also explicitly includes anti-money laundering and counter-terrorism financing responsibilities for the cryptocurrency sector, bringing Kenya in line with key global financial security norms.
This top-down legislative approach comes as a bottom-up cryptocurrency economy is already gaining traction. The potential for synergy is evident in areas like Nairobi’s Kibera neighborhood, where a community-run “Bitcoin circular economy” has already completed over 2,000 small-scale transactions.
Machankura, a USSD platform, allows users with basic mobile phones to transact in Bitcoin without needing an internet connection, while local platforms integrate smoothly with the widely used M-Pesa mobile money system.
With President Ruto’s approval, Kenya will join a select group of African pioneers that have established digital asset frameworks, including South Africa, Nigeria, and Mauritius.
