The government will begin licensing cryptocurrency service providers operating in Kenya after regulations guiding implementation of the Virtual Assets Service Providers Act, 2025 are developed and adopted.
According to a joint statement by the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) who are the industry regulators, the National Treasury has kicked off the development of regulations that will help operationalize the law which was enacted in October and came into force on November 4, 2025.
“The Act designates the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as the regulators responsible for licensing, supervising, and regulating VASPs in Kenya. The Act provides for CBK and CMA to license VASPs in accordance with the services listed in the First Schedule to the Act,” the two regulators said in a statement.
Kenya is among the top countries with fastest growing cryptocurrency markets in the world and according to Statista, industry revenue is projected to reach Ksh 13 billion by end of this year with number of users growing to 1.35 million by end of 2026.
CBK says the VASP Act further outlines obligations of VASPs in the prevention of money laundering, terrorism
financing, and proliferation financing.
“Consequently, the licensing of VASPs will commence upon issuance of these Regulations. Currently CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya,” the bank added.
The move now gives industry time to align with the act before full implementation begins.
