Kenya passes bill to regulate cryptocurrency
The Virtual Asset Service Providers Bill positions Kenya as one of the first African nations to formalise cryptocurrency oversight.
Kenyan lawmakers have approved the Virtual Asset Service Providers Bill, establishing a formal regulatory framework for cryptocurrency and digital assets. The Central Bank of Kenya will licence digital assets, while the capital markets regulator oversees exchanges.
The bill now awaits President William Ruto’s signature to become law.
The country has experienced rapid cryptocurrency growth despite limited prior regulations. A 1.5% digital assets tax was introduced in 2023, and Kenya ranked fourth in Africa for crypto adoption in 2024, behind Nigeria, Ethiopia, and Morocco.
The IMF has urged Kenya to align crypto rules with global standards to reduce risks like money laundering and terrorism financing. Lawmakers appear to have heeded these warnings as the nation moves toward its first formal crypto legislation.
Kenya’s adoption reflects a broader trend across eastern Africa, where cryptocurrencies are increasingly used for cross-border remittances and international transactions.
Stablecoins represented roughly 43% of Sub-Saharan Africa’s crypto transactions in 2024, while South Africa saw its first publicly listed company adopt Bitcoin as a treasury asset earlier this year.
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