Nairobi shakes off its 'Wild West' crypto reputation as lawmakers throw weight behind regulatory framework.
After years of operating in a gray zone, Kenya's digital asset ecosystem braces for transformation—and maybe some grown-up supervision.
From Chaos to Control
Parliamentarians just fast-tracked legislation that’ll put the Central Bank in the crypto driver's seat. No more 'wait-and-see'—the move signals Africa's fourth-largest crypto economy is ready to play by (some) rules.
The Fine Print
Details remain scarce, but insiders whisper about mandatory licensing for exchanges and KYC requirements that’ll make privacy coins sweat. Traders already grumble about 'innovation-stifling bureaucracy'—because nothing kills decentralized dreams faster than government forms in triplicate.
Why It Matters
With 8.5% of Kenyans holding crypto (second only to Nigeria in Africa), this isn’t just paperwork—it’s a power move. Regulation could lure institutional money… or send P2P markets into overdrive. Either way, bankers better dust off those anti-money laundering manuals they’ve been using as coffee coasters.
Kenya’s not just regulating crypto—it’s betting that oversight can turn digital gold into taxable revenue. Watch this space: the shilling’s got competition.
Committee Adopts Virtual Assets Chamber’s Recommendation
The Virtual Assets Chamber (VAC), Kenya’s leading policy think tank for blockchain and virtual assets, has recommended deleting a clause in the legislation – Virtual Asset Service Providers Bill, 2025.
The VAC said that the provision, which grants the regulatory authority to conduct off-site surveillance, was “overly prescriptive.” It has no clear definition or boundaries on what off-site surveillance involves, it added.
The Financial Commission noted that it abides by the VAC’s recommendation.
The Bill has received strong backing from crypto players after it was introduced to Parliament on April 4, 2025.
From Challenges to Transformation
In Kenya, the VASPs have been facing challenges for several years in accessing banking services. The Central Bank issued an advisory that cautioned financial institutions against dealing with crypto-related businesses.
However, the Kenyan virtual asset landscape is on the cusp of a significant transformation with the introduction of the Bill. The proposal will require all crypto providers to open and maintain a bank account within Kenya, addressing transparency and accountability.
The Bill, if passed, WOULD make Kenya the third among African nations, after Nigeria and South Africa, to have a crypto-specific law.
