Kenya’s cryptocurrency sector is set to enter a new phase as Parliament passes the Virtual Asset Service Providers (VASP) Bill, 2025, sending it to President William Ruto for assent. The law promises to provide clarity for operators and investors who have long navigated an unregulated market.

The legislation will require both local and international platforms—including Luno, Busha, KotaniPay, Fonbnk, Swypt, and Binance—to meet licensing and solvency standards. Regulators expect the framework to reduce risk, encourage institutional participation, and boost investor confidence.

The bill designates the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as joint overseers of digital assets, while empowering the Treasury Cabinet Secretary to issue detailed rules on stablecoins, tokenisation, capital adequacy, and anti-money laundering compliance.

First introduced in 2024, the VASP Bill underwent months of public consultation and committee review. The process reflects a careful effort to balance innovation with consumer protection in a rapidly evolving market.

“Kenya is one signature away from making regulatory history,” said Chebet Kipingor of Busha Kenya, highlighting the law’s potential to formalise the country’s crypto sector. President Ruto is expected to receive the final bill within weeks, marking a milestone in Africa’s growing digital finance landscape.