Kenya’s digital assets ecosystem has officially stepped out of regulatory uncertainty with the signing of the Virtual Asset Service Providers (VASP) Act, 2025—an achievement widely celebrated by crypto players across the country. Passed by Parliament and signed by President William Ruto on October 15, the Act gives Kenya’s blockchain sector much-needed legal clarity after years of operating in a grey zone. The law introduces clear rules for virtual asset service providers, including governance standards, consumer protections, AML requirements, and restrictions on anonymity-enhancing tools such as mixers. It also strengthens oversight by empowering the Cabinet Secretary of the Treasury to assign additional regulators to the sector. For many in the industry, this long-awaited legislation signals that Kenya is finally embracing its role as one of Africa’s most engaged crypto markets.
Industry stakeholders say the law brings legitimacy, confidence, and a chance for sustainable growth. Chebet Kipingor of Busha described the Act as a watershed moment, noting that local exchanges now have a stable framework to operate and scale. Yellow Card’s Kenya country manager, Peter Mwangi, echoed this sentiment, calling the Act a strategic validation of their commitment to compliance and customer protection. Both leaders highlighted that the new regulatory environment enables genuine dialogue with government institutions—shifting from years of regulatory silence to an era of structured engagement. Lobbying groups, which pushed for clearer rules and the removal of the controversial digital asset tax, consider the Act a major victory and a foundation for future reforms.
Beyond its political and economic significance, the passage of the VASP Act represents a renewed partnership between Kenya’s crypto community and its government. Stakeholders plan to work closely with regulators to ensure implementation does not suppress innovation—a concern previously raised within the ecosystem. Although controversies surfaced during the lobbying process, particularly around alleged external influence, the final Act avoids creating an entirely new regulator and instead strengthens oversight from the CBK and CMA. For Kenya’s crypto sector, this legislation marks not an endpoint but the beginning of more structured, transparent, and innovation-friendly growth.