Kenya’s parliament in East Africa has approved a bill to regulate Bitcoin (BTC) and cryptocurrencies. The regulation would allow the country’s central bank to license issuers of virtual assets, and the Capital Markets Authority would oversee exchanges.
Although the Virtual Asset Service Provider Bill has not yet been signed into law by President William Ruto, The country is positioned as the “gateway to Africa” and is trying to attract investment. and protect investors.
The legislative process for the bill began on June 24, 2025, when Councilor Kuria Kimani introduced a motion for consideration and approval as chairperson. After several debates and deliberations in the Diet, the project was finally approved at third reading on October 7, 2025.
The main purpose of this law is to Comprehensive regulatory framework for virtual asset service providers (VASP), exchanges, wallets, and cryptocurrency trading platforms including Bitcoin.
This document defines virtual assets as digital representations of value, other than fiat currencies or traditional securities, that can be traded or transferred digitally for payment or investment.
With this, Kenya aims to foster innovation and financial inclusion in the fintech sector, while reducing risks such as money laundering, terrorist financing and financial instability, as stated in the document.
Licensing requirements are strict. It requires companies to maintain a local registered office, appoint a qualified CEO, and comply with capital and solvency standards to protect customers.
standard Operation without a license is expressly prohibitedclarifies that licenses granted at the same time are not transferable. Initial offerings of virtual assets (similar to ICOs) require prior approval and natural persons are excluded from these activities. Additionally, they require protection of customer assets, robust cybersecurity, and annual audits.
In January 2025, CriptoNoticias reported that Kenya was planning to legalize Bitcoin and cryptocurrencies. At the time, the aim was said to be to mitigate the risks of fraud, money laundering and terrorist financing that cryptocurrencies entail, as well as to leverage the potential profits associated with this ecosystem.