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VISTORBELITUNG.COM,Nairobi, Kenya – In a landmark move poised to reshape East Africa's digital finance landscape, Kenya's National Assembly has passed the Virtual Asset Service Providers (VASP) Bill, 2025. This legislation, approved with broad support on October 7, 2025, marks a major step toward establishing a comprehensive regulatory framework for cryptocurrencies and digital assets, though it stops short of declaring Bitcoin or any other crypto as legal tender.
The bill now awaits President William Ruto's final assent to become law, a formality widely expected to pass, positioning Kenya as one of Africa's foremost nations with clear crypto regulations.
Despite the enthusiasm, sources confirm the bill’s primary focus is on regulation and consumer protection rather than outright legalisation in the sense of making Bitcoin an official currency alongside the Kenyan shilling. The VASP Bill seeks to bring coherence and trust to a rapidly growing sector, where an estimated 4.5 million Kenyans about 13% of the population—are already engaged in crypto-related activities.
Key components of the bill include
Licensing Requirements: All Virtual Asset Service Providers (VASPs), including exchanges, brokers, and wallet operators, will be required to obtain formal licenses and register with designated regulators, primarily the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA).Anti-Money Laundering (AML) Compliance: Providers must implement strict Know Your Customer (KYC) procedures and report suspicious transactions, a move that is crucial for Kenya's efforts to exit the Financial Action Task Force (FATF) 'greylist.'
Consumer Safeguards: The law prohibits deceptive advertising, mandates transparent risk disclosures, and empowers regulators to penalise misconduct with fines of up to KSh 5 million (approx. $38,000 USD) or imprisonment.Tax Revisions The legislation integrates a recent fiscal revision that reduces the digital asset tax rate from 3% to a more growth-friendly 1.5%, designed to stimulate adoption and investment.
Market observers anticipate that the regulatory clarity provided by the VASP Bill will significantly boost foreign direct investment (FDI), attracting major global crypto platforms like Binance and Coinbase. Proponents argue that the formalisation of the sector could create up to 10,000 fintech jobs and cement Kenya’s status as a regional innovation hub, building on its history of success with mobile financial services like M-Pesa.
“Kenya is one signature away from making regulatory history,” said Chebet Kipingor of Busha Kenya. "This law signals a vital shift toward balancing innovation with robust consumer protection."
By formalizing operations and mitigating risks, the government hopes to restore investor confidence, reduce the incidence of fraud, and unlock billions in potential investment for the tech-savvy Kenyan populace. The long-term goal is to position Kenya alongside regional leaders like South Africa in the regulated digital finance space.
This video discusses Kenya's plan to implement regulations for virtual asset trading to combat illicit activities, which is relevant to the newly passed VASP Bill. Kenya to Implement Crypto Regulations to Combat Illicit Activities