Kenya crypto regulation advances with VASP licensing bill
Kenya crypto regulation takes a major step forward as parliament passes the Virtual Asset Service Providers (VASP) Bill 2025, now pending presidential assent. Once enacted, the law will assign the Central Bank of Kenya (CBK) to license fiat–crypto payment processors and stablecoins, while the Capital Markets Authority (CMA) will oversee exchanges, wallets, brokers and digital asset managers. Over the past year, Kenya received nearly $20 billion in crypto flows and ranks third in Sub-Saharan Africa for adoption, underscoring robust market activity. The VASP Bill aims to strengthen consumer protections, enforce anti-money-laundering standards and enhance governance by establishing clear compliance requirements for service providers. Projects like Worldcoin (WLD) and major exchanges must secure formal licences or face enforcement actions. This framework is expected to bring immediate legal clarity, boost investor confidence, attract foreign investment and set a regional standard. Traders should monitor presidential assent and forthcoming CBK and CMA guidelines to gauge licensing timelines and market entry opportunities under Kenya crypto regulation.
Bullish
The approval of the VASP Bill and its assignment of licensing powers to the CBK and CMA greatly reduces regulatory uncertainty in Kenya crypto regulation. Short-term, traders may face volatility around licensing deadlines and enforcement roll-outs. However, the clear legal framework is likely to attract institutional and foreign capital, boost trading volumes and enhance market integrity over the long term. This legal clarity typically supports higher investor confidence and sustainable price appreciation, making the overall impact bullish.