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The proposed Virtual Assets Service Providers VASP Bill 2025 may edge out small players if passed in its current form.
Yellow Card Senior Legal Counsel Edline Murungisays the government should consider a tier system in the provision of penalties and licensing adding that high compliance costs and penalties may be untenable for smaller players.
VASP Bill, 2025 aims to establish a comprehensive legal and regulatory framework for virtual assets and the entities that offer services related to them.
This legislation, has been positively welcomed by players, however, a section believe it could be made even better.
For instance, the bill proposes fines of up to Ksh 10 million and even possible prison terms of up to 5 years for infractions. Here, the government is hoping to edge out bad actors using Virtual Assets.
The bill is currently under parliamentary consideration, where regulatory oversight will be shared between the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA).
The bill’s successful implementation could position Kenya as a more attractive hub for crypto-related ventures in the region.
