Kenya Introduces Crypto Licensing Framework
Kenya has taken a significant step in regulating its crypto industry. The country’s parliament recently passed the Virtual Asset Service Providers Bill, 2025. This new law requires all crypto service providers to get a license. It ends years of regulatory uncertainty.
The Central bank of Kenya and the Capital Markets Authority will oversee these services. They will ensure exchanges,wallet providers,and other firms follow strict rules. This includes consumer protection,anti-money laundering (AML) standards,and operational safeguards.
Kimani Kuria, the Finance and National Planning Committee chair, calls it a “landmark moment.” It brings clarity and promotes innovation while protecting consumers from fraud.
Under the new law, any company offering crypto services must get a license. This applies to both local and foreign firms registered in Kenya.
- Licensed entities must protect client assets.
- They need insurance and bank accounts in Kenya.
- They must have conflict-of-interest policies and keep detailed transaction records.
The regulators have broad powers to inspect, supervise, and sanction non-compliant operators. The law also extends AML and counter-terrorism financing obligations to the crypto sector.
Kenya’s move comes as grassroots crypto adoption grows. in Nairobi’s Kibera neighborhood, a community-run “Bitcoin circular economy” has processed over 2,000 small transactions. innovations like the USSD platform Machankura allow users with basic phones to get a license and submit to oversight. The Central Bank of Kenya and the Capital Markets Authority will jointly manage exchanges, wallet providers, and related firms. The law aims to build trust in the sector. Licensed entities must maintain robust protections for client assets, secure insurance, and keep detailed transaction records. They must also hold bank accounts within the country and implement conflict-of-interest policies.
Kenya’s move toward crypto oversight comes as grassroots adoption expands. The bill defines a Virtual Asset service Provider (VASP) must get a license.This applies to both local and foreign firms registered in Kenya.
Upon President Ruto’s assent, Kenya will join other African countries with established digital asset frameworks, including South Africa, Nigeria, and Mauritius.
