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The Virtual Asset Service Providers Act, 2025 (the Act) came into force following presidential assent on 15 October 2025, marking a crucial evolution in Kenya's regulatory approach to virtual assets. The Act departs from the position established in 2015 by the Central Bank of Kenya (CBK) in its Banking Circular, which advised that virtual currencies were unregulated, not legal tender, and cautioned financial institutions against transacting with entities dealing in such currencies.
This landmark piece of legislation establishes a comprehensive legal framework aimed at licensing and regulating the activities of Virtual Asset Service Providers (VASPs) operating in and from Kenya. The Act is structured to define the confines of regulated activity, designate supervisory authorities, impose licensing and fit-and-proper requirements, and create an enforcement regime that integrates VASPs into the existing regulatory architecture.
In this legal alert, we analyse the Virtual Asset Service Providers Act, 2025, its impact on Kenya's digital asset ecosystem and practical steps organisations should take to ensure compliance under the new regime.
Click here to download and read the full alert.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
