Kenya’s parliament passes crypto‑asset law to boost investments

Kenya Parliament Passes Landmark Crypto Asset Law to Boost Investments
Kenya’s parliament has passed a comprehensive crypto asset law, establishing one of Africa’s first comprehensive regulatory frameworks for digital currencies in a bid to attract investment and protect consumers. The new legislation provides clear guidelines for the trading, taxation, and operation of cryptocurrency businesses, marking a significant shift from the previous regulatory uncertainty that has characterized the sector.
The law, which is expected to be signed by the president, mandates the licensing of all digital asset providers and brings cryptocurrency exchanges under the oversight of the Capital Markets Authority. It establishes clear anti-money laundering and counter-terrorism financing protocols, while also defining how cryptocurrencies will be taxed. The legislation comes after extensive consultation with industry stakeholders and represents a balancing act between fostering innovation in Kenya’s vibrant fintech sector and implementing necessary consumer protections.
Industry leaders have welcomed the move as a game-changer for Kenya’s digital economy. This provides the legal certainty we need to operate and expand our services, said the CEO of a Nairobi-based blockchain firm. It signals to international investors that Kenya is open for business in the digital assets space. The new framework is expected to encourage more traditional financial institutions to engage with cryptocurrency companies and could pave the way for innovative financial products.
The long-term impact of this legislation could position Kenya as a regional leader in digital finance. By creating a regulated environment for crypto assets, the country aims to reduce fraud risks that have plagued the sector while attracting foreign investment in blockchain technology. The move aligns with Kenya’s broader digital transformation goals and may serve as a model for other African nations grappling with how to regulate this rapidly evolving asset class, potentially creating new economic opportunities in the emerging digital economy.