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Kenya’s proposed VASP Bill introduces a 5-agency crypto regulatory framework to license and monitor digital asset providers.
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With broad support, the bill aims to boost financial transparency and make Kenya a leading crypto hub in Africa.
With the cryptocurrency market booming in 2025, Kenya has taken a major step toward regulating digital assets. The country’s National Assembly Finance and Planning Committee has proposed the formation of a multi-agency regulatory framework to oversee crypto operations, marking a pivotal moment for the region’s virtual asset industry.
Kenya’s New Crypto Regulatory Framework
Driven by the explosive growth of the crypto sector, Kenyan lawmakers are moving quickly to establish oversight mechanisms. The proposed framework brings together five key government agencies to regulate Virtual Asset Service Providers (VASPs):
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Central Bank of Kenya
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Capital Markets Authority
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Competition Authority of Kenya
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Communications Authority of Kenya
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Office of the Data Protection Commissioner
These bodies will collectively regulate various aspects of the crypto ecosystem, including market conduct, data protection, and digital infrastructure.
Why Kenya Introduced This Crypto Proposal
The proposal stems from a recommendation by Credence Sfrica, a social enterprise organization, which called for a cross-sectoral regulatory team to supervise the rapidly expanding crypto market. The initiative is now open for public feedback, as the Finance Committee aims to build a collaborative and transparent crypto policy.
Virtual Asset Service Providers (VASPs) Bill Gains Momentum
Introduced on April 4, 2025, the Virtual Asset Service Providers (VASP) Bill has received strong support from key players in the crypto industry. The Virtual Asset Chamber (VAC) praised the bill but recommended removing a controversial clause that allowed regulators to conduct off-site surveillance of VASPs without clear boundaries. The committee agreed with the VAC and has amended the bill accordingly.
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Kenya Aims to Become Africa’s Crypto Hub
Kenya is positioning itself as a crypto leader in Africa, moving past its earlier caution. The new VASP Bill is designed to strengthen financial transparency, accountability, and combat illicit financial flows. Lawmakers believe it will help protect consumers and legitimize the crypto space in the country.
Key Requirement for VASPs
If the bill is passed, all entities engaging in crypto operations in Kenya will be required to obtain a local license approved by the five regulatory agencies. These licensed VASPs must also implement internal policies to identify and manage conflicts of interest and report such matters to authorities.
“This Bill puts a strong emphasis on conflict prevention and proper management among virtual asset providers,” said MP Kimani Kuria. “It requires entities to establish effective internal controls to ensure transparency and accountability.”
Final Thoughts
As Kenya prepares to pass its first comprehensive crypto regulation, it sends a clear signal of intent: the nation is serious about embracing digital finance while safeguarding its citizens. If implemented successfully, this could place Kenya at the forefront of Africa’s blockchain revolution.
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