Crypto Regulation Kenya 2025: Parliament Passes VASP Bill to Legalize Digital Assets
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The post Crypto Regulation Kenya 2025: Parliament Passes VASP Bill to Legalize Digital Assets appeared first on Coinpedia Fintech News Kenya’s parliament has passed the Virtual Asset Service Providers (VASP) Bill, providing the country with its first clear legal framework for cryptocurrencies. The bill now moves to President William Ruto for approval, according to Reuters. Lawmakers believe the new legislation will bring clarity, enhance investor confidence, and stimulate growth in Kenya’s digital asset sector, which has previously faced challenges due to regulatory uncertainty. Who Will Oversee Cryptocurrency in Kenya? Under the new law, crypto oversight will be shared between two key authorities. The Central Bank of Kenya (CBK) will be responsible for licensing stablecoins and other virtual assets, while the Capital Markets Authority (CMA) will supervise crypto exchanges and trading platforms. Kuria Kimani, head of the National Assembly’s finance committee, explained: “This structure is designed to balance safety and innovation, ensuring that both investors and businesses have clear guidelines for operating in the digital asset market.” By splitting responsibilities, Kenya aims to protect consumers while fostering innovation in the rapidly evolving crypto sector. Kenya Hopes to Attract Global Crypto Investment and Innovation The VASP Bill is expected to position Kenya as a hub for cryptocurrency exchanges and fintech innovation in Africa. Young Kenyans, particularly those aged 18 to 35, are already actively using virtual assets for trading, payments, investment, and business purposes. Kuria Kuria added: “We hope Kenya can become Africa’s gateway for digital assets. By providing a regulated environment, we aim to turn the enthusiasm of our young people into a structured market that drives economic growth.” With clear rules and oversight, the government aims to attract international crypto companies and fintech startups, encouraging economic development and creating new employment opportunities. The new law draws inspiration from crypto regulations…
