"Kenya has officially entered a new era for digital assets. President William Ruto signed the Virtual Asset Service Providers Act, 2025, giving the country its first comprehensive crypto regulation framework. The new law licenses and regulates crypto exchanges, wallet providers, brokers, and payment processors operating in or from Kenya. It also brings the fast-growing sector under the oversight of two main regulators - the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA)."
"Under the Act, the CBK will supervise payment processors and stablecoin issuers, while the CMA will oversee trading platforms, investment advisers, and asset managers. Both agencies will now be responsible for ensuring compliance with anti-money laundering and consumer protection standards. The Act requires all providers to obtain a license, maintain audited records, and meet capital and cybersecurity requirements. Unlicensed operations will now be illegal."
"For Bitcoin users, the benefits outweigh the costs. Licensed platforms must now segregate client funds, hold adequate reserves, and protect customer data. The law mandates strict Know-Your-Customer (KYC) checks, record-keeping, and suspicious transaction reporting to curb money laundering and terrorism financing. Violations could lead to fines of up to KES 20 million ($130,000) or imprisonment. The move places Kenya alongside South Africa, which established its crypto licensing regime in 2023."
Kenya enacted the Virtual Asset Service Providers Act, 2025, creating the country's first comprehensive crypto regulation framework. The law licenses and regulates crypto exchanges, wallet providers, brokers, and payment processors operating in or from Kenya. The Central Bank of Kenya will supervise payment processors and stablecoin issuers, while the Capital Markets Authority will oversee trading platforms, investment advisers, and asset managers. Both agencies will enforce anti-money laundering and consumer protection standards. Providers must obtain licenses, maintain audited records, meet capital and cybersecurity requirements, and perform strict KYC and suspicious transaction reporting. Violations risk fines up to KES 20 million or imprisonment. The law aims to attract investment and legitimize digital assets.
Read at Bitcoin Magazine
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