Kenya Passes Cryptocurrency Regulation Bill
Date: 2025-10-14 Author: Henry Casey Categories: IN WORLD
The Kenyan Parliament has approved a bill regulating the circulation of digital assets and the activities of service providers related to virtual assets. The document, titled the Virtual Asset Service Providers Bill, was approved by a majority vote and is now being sent to President William Ruto for signature.
According to Reuters, Kuria Kimani, chair of the parliamentary finance committee, stated that the main goal of the initiative is to eliminate uncertainty in cryptocurrency market regulation. The new law should establish clear rules for industry participants and ensure oversight of crypto platforms.
According to the bill, the Central Bank of Kenya will be responsible for licensing stablecoins and issuing digital assets, while regulation of crypto exchanges and trading platforms will be overseen by the local capital markets regulator. Thus, the authorities aim to create a transparent oversight system that will help protect investors and reduce the risk of fraud.
Kimani noted that when drafting the bill, Parliament drew on the experience of the US and UK, where the crypto market already has a robust regulatory framework. He emphasized that the adoption of the document will be an important step toward attracting international investment in the fintech sector. He stated that clear regulations will help attract major global exchanges, including Binance and Coinbase, and will strengthen trust in the Kenyan crypto market.
The politician also expressed hope that Kenya could become a leading hub for crypto innovation in Africa. He noted that a significant portion of the country's population aged 18 to 35 already actively uses digital assets—not only for trading and investing, but also for payments and business.
The new law is expected to provide additional impetus to economic development and accelerate the digital transformation of the country's financial system. The Kenyan government intends to use cryptocurrency regulation as a tool to attract new technologies and investment, which could ultimately make the country one of the continent's leading crypto industries.
Kenyan authorities have previously announced plans to legalize cryptocurrency, and the current parliamentary decision is a logical continuation of these initiatives. Once the president signs the law, the country will definitively establish cryptocurrencies as a regulated financial instrument.
