Kenya has introduced its first regulatory framework for cryptocurrencies through the Virtual Asset Service Providers Bill 2025. This marks a major policy shift in one of Africa’s most active crypto markets. The bill proposes a dual oversight system: the Central Bank of Kenya (CBK) will regulate wallet providers, stablecoin issuers, and payment processors, while the Capital Markets Authority (CMA) will oversee exchanges, ICOs, tokenisation platforms, and crypto investment services.
ICOs will now require CMA approval, full project disclosures, and must follow regulations similar to traditional IPOs. Tokenisation platforms must register with the CMA and disclose how real-world assets are valued and transferred. Stablecoin issuers will face new licensing conditions, reserve requirements, and mandatory audits to manage systemic risk.
Penalties for non-compliance include fines of up to $155,000, imprisonment, and permanent bans from the industry. This framework reflects a sharp pivot from the CBK’s 2015 anti-crypto stance. Kenya’s high adoption rate—47% of consumers own crypto—combined with increasing stablecoin use, has driven the push for formal regulation.
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