Kenya’s parliament has passed the Virtual Asset Service Providers Bill, giving the country its first comprehensive law to regulate cryptocurrencies and virtual assets, according to
Reuters reported that lawmakers passed the bill last week, Kuria Kimani, who chairs the National Assembly’s finance committee, said Monday.
The bill aims to fill a regulatory void that has long stifled investor confidence in the digital assets sector. Next, the legislation awaits President William Ruto’s signature to become law.
Under the new act, the Central Bank of Kenya will issue licenses for stablecoins and other virtual assets, while the Capital Markets Authority will oversee crypto exchanges and trading platforms. That division of responsibilities, Kimani said, reflects a careful approach to governance.
Clear Rules Expected To Draw Global Exchanges To Kenya Market
The timing of Kenya’s move comes as regulators globally warn that US dollar–backed stablecoins could erode the value of local currencies in developing economies.
The government believes that legal clarity will attract fresh investment into fintech and crypto exchanges, which have already held talks with Kenyan authorities.
Kimani said the government envisions Kenya becoming a central hub for digital asset activity in Africa, with a growing number of young people already using cryptocurrencies for trading, payments and investment.
Law Draws From US And UK Frameworks To Regulate Digital Assets
Across the world, the digital assets industry has exploded over the past decade, but governments have struggled to regulate it, especially in ways that prevent illicit activity while allowing innovation to flourish.
Kenya’s law, Kimani added, draws on legal frameworks used in other countries such as the US and Britain.
Earlier this year, Kenyan MPs threw their support behind a government-proposed multiagency framework.
Under that plan, agencies including the Central Bank of Kenya, the Capital Markets Authority, the Competition Authority, the Communications Authority, and the Office of the Data Protection Commissioner would jointly oversee functions such as VASP licensing, market conduct, data protection, and digital infrastructure.
Kenya now joins a limited club of African nations advancing formal crypto regulation, alongside countries like South Africa, that have moved to govern the sector through statute rather than piecemeal rulemaking.
Elsewhere on the continent, Uganda has launched one of Africa’s most ambitious blockchain projects. The country is piloting a $5.5b real-world asset tokenization initiative alongside a central bank digital currency trial.
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