Kenya enforces new law to bring crypto firms under Central Bank’s watch
- Kenya has introduced the Virtual Asset Service Providers Act 2025, marking the first formal regulation of its crypto sector.
- The Act grants the Central Bank of Kenya and the Capital Markets Authority the authority to license and supervise digital asset companies.
- No firms are currently licensed as new regulations from the National Treasury are pending.
The introduction of formal regulations for Kenya's crypto sector is a significant step towards fostering a safer and more transparent digital asset environment. However, the success of these regulations will depend on the swift implementation of licensing processes and the ability of regulators to effectively enforce compliance. Ongoing dialogue between regulators and industry stakeholders will be crucial to ensure that the framework supports innovation while mitigating risks.
