Bitcoin. Photo | courtesy.
Kenya has published the 2025 Virtual Asset Service Providers Bill, proposing the first regulatory framework for cryptocurrencies.
The proposed legislation, the first of its kind in the country, outlines a comprehensive framework to govern the use and trade of cryptocurrencies and other digital assets.
The Bill assigns regulatory oversight to both the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA).
The CBK will be mandated to oversee digital wallets and stablecoins, while the CMA will supervise crypto exchanges, trading platforms, and initial coin offerings.
Under the proposed law, any entity offering virtual asset services including wallet providers, exchanges, brokers, investment advisers, and even crypto miners will be required to obtain a license from the relevant authority.
These licenses are non-transferable and must be renewed annually.
To qualify, providers must have a physical office in Kenya, and appoint a vetted Chief Executive Officer or directors with no history of fraud or dishonesty.
Additionally, they must establish robust systems to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) standards, implement strong cybersecurity measures, and protect users’ data and funds.
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The bill also introduces a 3 percent Digital Assets Tax (DAT) on transactions involving virtual assets, signaling the government’s intent to bring crypto into the tax net.
“The bill seeks to strike a balance between fostering innovation and ensuring financial stability, consumer protection, and anti-money laundering compliance,” said the National Treasury in a statement.
Kenya has seen surging crypto adoption, particularly among young investors and digital entrepreneurs, amid an absence of formal oversight.
The Bill is currently open for public comment and will be debated in Parliament later this year.
