Kenya’s National Assembly has approved a bill that will regulate cryptocurrencies and digital assets, aiming to bring clarity, attract investment, and enable safer growth in the sector. The Virtual Asset Service Providers (VASP) Bill, 2025 now awaits President William Ruto’s signature to become law.
Under the approved framework, the Central Bank of Kenya (CBK) will be vested with the authority to issue licenses for stablecoins and digital asset issuance, while the Capital Markets Authority (CMA) will oversee crypto exchanges, trading platforms, and related service providers. The bill supplies a structured licensing and compliance regime intended to support innovation while enforcing anti-money laundering (AML) rules, cybersecurity standards, consumer protection, and market integrity.
According to Kuria Kimani, Chairman of the Finance Committee in Parliament, the regulation is designed to dispel uncertainty in Kenya’s digital-asset landscape and encourage global platforms like Binance and Coinbase to deepen operations in Kenya. He also framed the law as a recognition that a large share of young people (aged 18–35) use crypto for payments, saving, and investment.
The VASP Bill originally included a controversial clause that would have given the Virtual Asset Chamber of Commerce (VACC), a crypto industry lobby group, representation on a new regulatory authority. That clause has since been removed. Instead of creating a new unified regulator (sometimes called VARA), Kenya will use a multi-agency model with existing bodies like CBK and CMA handling different parts of oversight.
It is believed Kenya’s decision places it in the vanguard of African countries with formal digital-asset legal frameworks. While nations like South Africa already have regulations, Kenya has lacked stable, clear rules. This law is expected to give local crypto firms a pathway to formal licensing and reduce risky or unregulated operations.
However, the real impact will depend on how Kenya’s regulators define capital requirements, custody rules, disclosure obligations, and compliance thresholds. If these standards are too high or costly, smaller startups may struggle to participate.
If President Ruto signs the bill, and assuming the supporting regulations follow quickly,Kenya could soon become a trusted jurisdiction for crypto innovation in Africa. Clear rules will reduce risk, improve investor confidence, and help Kenya compete as a digital finance hub.
Read also: Bitmama: Building Africa’s Everyday Crypto Infrastructure
