The Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) are awaiting implementing regulations from the National Treasury before they can begin licensing and supervising Virtual Asset Service Providers (VASPs) in Kenya.
The Virtual Assets Service Providers Act, 2025, which took effect on November 4, provides a legal framework for regulating VASPs and sets out obligations to prevent money laundering, terrorism financing, and proliferation financing.
According to a joint statement by the authorities, the Act “establishes clear rules for the regulation of VASPs and assigns CBK and CMA as the designated regulators responsible for licensing and supervising these service providers in Kenya.”
The law, gazetted on October 21, 2025, allows CBK and CMA to license VASPs according to the services listed in the First Schedule of the Act.
At present, no VASPs are licensed to operate in or from Kenya, pending the release of the detailed regulations from the National Treasury.
“Consequently, the licensing of VASPs will commence upon issuance of these Regulations,” the statement added.
Once issued, the regulations will provide guidance on compliance, operational standards, and reporting requirements for virtual asset providers.
The Act also highlights the responsibilities of VASPs in safeguarding the financial system. As the statement notes, it “outlines obligations of VASPs in the prevention of Money Laundering, Terrorism Financing, and Proliferation Financing,” demonstrating Kenya’s commitment to promoting innovation while protecting against illicit financial activities.
The bill was enacted by Members of the National Assembly on October 13,2025 to regulate digital assets like cryptocurrencies, aiming to boost investment in the sector by establishing clear rules for the emerging industry.
CBK and CMA have provided contact points for stakeholders seeking further information. CBK can be reached at [email protected] or on +254 20 2860000/1000, while CMA can be contacted via [email protected] or +254 20 2264400, 0722 207767.
The implementation of the VASPs Act is seen as a significant step toward formalizing the virtual assets sector in Kenya, providing clarity, investor confidence, and regulatory oversight.
With the regulations in place, virtual asset providers will be able to obtain official licenses and operate legally in Kenya, marking a major milestone in the country’s journey to integrate digital financial services into its economy.
This move is expected to strengthen investor protection, encourage innovation, and create a safe, transparent environment for virtual asset operations while ensuring compliance with international financial standards.
