Kenya has taken a major step toward embracing cryptocurrency regulation, with its parliament officially approving the Virtual Asset Service Providers Bill, a landmark law designed to bring clarity, security, and innovation to the country’s fast-growing digital economy. The bill now awaits the signature of President William Ruto, whose approval will make Kenya one of Africa’s first nations to establish a comprehensive legal framework for digital assets.
According to Kuria Kimani, chair of the parliamentary finance committee, the new legislation aims to address the regulatory gap that has long surrounded the country’s crypto ecosystem. The absence of clear rules had previously raised concerns among investors and financial institutions about security, compliance, and market integrity. With this bill, Kenya intends to build a transparent and investor-friendly environment that encourages the responsible growth of blockchain technologies and crypto-based financial services.
Under the proposed framework, the Central Bank of Kenya (CBK) will take the lead in licensing and overseeing the issuance of stablecoins and other digital assets, ensuring that currency-backed tokens remain stable and compliant with monetary policies. Meanwhile, cryptocurrency exchanges and trading platforms will fall under the supervision of the Capital Markets Authority (CMA), responsible for enforcing investor protection and anti-money laundering standards.
Kimani highlighted that Kenya’s regulatory approach was inspired by models from the United States and the United Kingdom, which balance innovation with consumer safeguards. “The new law will establish clearer rules for the crypto sector, encouraging greater investment in Kenya’s fintech industry,” he said. “We expect that global players such as Binance and Coinbase will see this as an opportunity to expand operations into Kenya.”
The bill’s adoption marks a pivotal moment for Kenya’s digital economy, which has been growing rapidly thanks to its youthful population and widespread use of mobile financial services. Kimani noted that over 60% of Kenyans aged 18 to 35 already use digital assets for payments, trading, and business transactions. By creating a formal regulatory structure, the government aims to position Kenya as a gateway to Africa’s crypto and blockchain innovation, fostering trust and attracting both local and international capital.
Industry experts believe the move could accelerate Kenya’s emergence as a regional fintech powerhouse, particularly as global investors seek stable, well-regulated markets in Africa. The combination of clear legal guidance and Kenya’s digital-savvy population could make the country a leading destination for blockchain startups and Web3 projects.
In conclusion, Kenya’s approval of the Virtual Asset Service Providers Bill signals the beginning of a new regulatory era for African crypto markets. By creating a safe, structured, and innovation-friendly ecosystem, the nation is setting the stage to become a continental hub for digital finance, crypto trading, and blockchain entrepreneurship.
