Kenya Advances Crypto Regulation with VASP Bill
Kenya has backed the Virtual Asset Service Providers Bill (VASP) to regulate digital assets, Reuters reported, citing Kuria Kimani, chair of the parliamentary finance committee. The document now awaits the signature of President William Ruto.
Kimani explained that the bill aims to address the lack of a clear regulatory framework for the growing digital asset industry. Under the new legislation, the Central Bank of Kenya will oversee the licensing of stablecoins and the issuance of digital assets, while crypto exchanges and trading platforms will be regulated by the local capital markets authority.
Bill Inspired by Global Best Practices
The drafting of the bill drew on the experience of the United States and the United Kingdom. Kimani added:
"The new legislation is expected to create clearer regulatory guidelines, which, in turn, will stimulate investment in the fintech sector, particularly from leading crypto exchanges such as Binance and Coinbase."
The politician hopes Kenya will become a "gateway to Africa," noting that most young people aged 18 to 35 are already using virtual assets for trading, payments, and investment or business purposes. By March 2025, more than 200,000 Kenyans had embraced digital assets in various forms.
Kenya Expands Blockchain and Crypto Innovation
Earlier this year, it was reported that Kenya was preparing a bill to legalize crypto assets. The VASP Bill represents a major step toward creating a secure and structured environment for digital finance, potentially attracting more investors and blockchain projects to the country.
Several other African countries are also exploring digital asset regulation. Nigeria, South Africa, and Ghana have introduced policies to regulate cryptocurrency trading and fintech services, while countries like Uganda and Rwanda are piloting blockchain solutions for payments, supply chains, and government services.
Kenya’s new legislation positions it alongside these leaders, signaling the region’s growing interest in digital finance and blockchain innovation.
