Headquarters Central Bank of Kenya (CBK) in Nairobi. Photo/ Courtesy.
The Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) have announced the official commencement of the Virtual Assets Service Providers (VASP) Act, 2025.
The Act gazetted on October 21, 2025 came into effect on November 4, 2025, and establishes a legislative and supervisory framework for Virtual Asset Service Providers, including measures to combat money laundering, terrorism financing, and proliferation financing.
According to the public notice issued jointly by CBK and CMA, the law designates both regulators as responsible for licensing, supervising, and overseeing VASPs operating in or from Kenya.
“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 statement read.
The notice further explains that the National Treasury is currently developing regulations to guide full implementation of the Act. Licensing of VASPs will only begin once these regulations are finalized and issued.
“Currently CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya,” the regulators said, warning the market against assuming compliance until the framework is complete.
The Act requires VASPs seeking approval to fit within the service categories listed in the First Schedule of the legislation.
Once operationalized, the regulatory regime is expected to bring clarity to the digital asset ecosystem, improve consumer protection, and enhance oversight of crypto-related activities in the country.
