Bitcoin. Photo | Courtesy.
The National Assembly has passed the Virtual Asset Service Providers Bill, 2025, which will make all cryptocurrency service providers get a license before they can operate in the country. This new law aims to protect investors, stop fraud and make digital finance safer for everyone.
According to the bill, only registered companies can offer services like buying, selling, or storing digital money. It sets clear rules to protect customers’ funds, ensure honesty in transactions and reduce the risk of scams in the fast-growing crypto world.
If the law takes effect, companies that want to deal in virtual assets must first get a license from a main regulator such as the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK). These regulators will make sure that all companies follow rules about money laundering, data protection and consumer safety.
“This Bill seeks to provide a legislative framework to regulate virtual asset service providers and address potential risks associated with the misuse of virtual asset products and virtual asset services. The Bill designates the Capital Markets Authority and the Central Bank of Kenya as the primary regulatory authorities for virtual assets services and virtual assets service providers in Kenya,” the bill reads.
There’s a proposal for a new regulatory body called Virtual Assets Regulatory Authority (VARA).
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The Bill stipulate that companies limited by shares, whether local or foreign, can apply for licenses. To protect investors, companies must have strong safety systems, insurance for customer funds and open bank accounts in Kenya for easier monitoring.
It also gives regulators power to inspect, supervise, and punish companies that break the rules. The goal is to make Kenya’s digital finance space fair, transparent and trusted by both investors and the public.
