Kenya’s crypto sector is entering a tense transition period as new regulations clash with the sudden rise of Bitcoin ATMs.
Bitcoin ATMs have begun appearing in major Nairobi malls just days after Kenya introduced its first full cryptocurrency law. The machines, branded “Bankless Bitcoin,” let users buy and sell Bitcoin with cash, yet no operator is licensed under Kenya’s new Virtual Assets Service Providers Act. This clash has created a regulatory stress test for the country.
The Act, which took effect on November 4, sets strict rules for crypto exchanges, wallet providers, and trading platforms. Oversight is shared by the Central Bank of Kenya (CBK), Capital Markets Authority (CMA), and Communications Authority. Companies must meet capital requirements, cybersecurity standards, and anti-money-laundering obligations. The law also replaced Kenya’s 3% crypto transaction tax with a 10% excise duty on platform fees.
Despite these rules, the ATMs appeared in malls like Two Rivers and Westlands. Regulators quickly warned that no licensed Virtual Asset Service Providers exist yet, leaving these machines in legal limbo. This moment underscores Kenya’s broader challenge: fast-growing crypto adoption meeting a regulatory system still being built.
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