Kenya is moving towards stricter cryptocurrency regulation. The new Virtual Asset Service Providers bill has the potential to shift the landscape of the crypto industry in the country.
Kenya’s New Regulatory Framework
The National Assembly's Finance and Planning Committee of Kenya has proposed the formation of a multi-agency regulatory framework to oversee cryptocurrency operations. The proposal includes five key government agencies:
* Central Bank of Kenya * Capital Markets Authority * Competition Authority of Kenya * Communications Authority of Kenya * Office of the Data Protection Commissioner
These bodies will collectively regulate various aspects of the crypto ecosystem, including market conduct, data protection, and digital infrastructure.
Reasons for Introducing New Regulatory Proposal
The proposal stems from a recommendation by the social enterprise organization Credence Sfrica, which called for a cross-sectoral regulatory team to supervise the rapidly expanding crypto market. The initiative is now open for public feedback, as the Finance Committee aims to build a collaborative and transparent crypto policy.
Virtual Asset Service Providers (VASPs) Bill Gains Support
Introduced on April 4, 2025, the Virtual Asset Service Providers (VASPs) Bill has received strong support from key players in the crypto industry. The Virtual Asset Chamber (VAC) praised the bill but recommended removing a controversial clause that allowed regulators to conduct off-site surveillance of VASPs without clear boundaries. The committee agreed with the VAC and has amended the bill accordingly.
"This Bill puts a strong emphasis on conflict prevention and proper management among virtual asset providers," said MP Kimani Kuria. "It requires entities to establish effective internal controls to ensure transparency and accountability."
As Kenya prepares to pass its first comprehensive cryptocurrency regulation, it sends a clear signal of intent: the nation is serious about embracing digital finance while safeguarding its citizens. If implemented successfully, this could place Kenya at the forefront of Africa’s blockchain revolution.
