Kenya Establishes First Legal Framework for Crypto Industry
Kenya's parliament has passed the VIRTUAL Asset Service Providers Bill, 2025, marking a pivotal shift in the country's approach to digital assets. The legislation mandates licensing for all crypto service providers, including exchanges and wallet operators, under the joint oversight of the Central Bank of Kenya and the Capital Markets Authority.
The new framework introduces consumer protections, anti-money laundering standards, and operational safeguards. This move comes as grassroots crypto adoption continues to grow in Kenya, positioning the nation as a regulated hub for digital asset innovation in East Africa.
Finance Committee Chair Kimani Kuria hailed the legislation as a landmark for Kenya's financial ecosystem, emphasizing its role in providing clarity while protecting consumers from fraudulent schemes. The bill now awaits presidential assent.
