Kenya is on the verge of enacting its first cryptocurrency law after Parliament passed the Virtual Asset Service Providers (VASP) Bill, 2025, at its third reading. The bill now heads to President William Ruto for his assent.
First introduced in 2024, the VASP Bill designates the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as joint regulators of digital assets. It also empowers the Treasury Cabinet Secretary to issue detailed rules covering stablecoins, tokenisation, capital standards, and anti-money laundering (AML) compliance.
The new framework will establish clear licensing and solvency requirements for both local and foreign virtual asset operators. These include major players such as Luno, Busha, KotaniPay, Fonbnk, Swypt, and Binance.
The legislation follows months of public consultations and a comprehensive committee review aimed at balancing innovation with consumer protection.
“Kenya is one signature away from making regulatory history, noting that the law reflects a strong commitment to responsible growth in the digital asset sector.
said Chebet Kipingor of Busha Kenya
President Ruto is expected to receive the final bill for assent within the coming weeks.
