The Act further outlines obligations of VASPs in the prevention of Money Laundering, Terrorism Financing, and Proliferation Financing.
The Act designates the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as the regulators responsible for licensing, supervising, and regulatingVASPs in Kenya.
The Act provides for CBK and CMA to license VASPs in accordance with the services listed in the First Schedule to the Act.
Accordingly, the Cabinet Secretary, National Treasury, pursuant to the Act and upon the advice of CBK and CMA is developing and shall issue Regulations for further guidance on implementation of the Act.
Consequently, the licensing of VASPs will commence upon issuance of these Regulations. Currently CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya.
The National Assembly passed the Virtual Asset Service Providers Bill, 2025 (National Assembly Bill No. 15 of 2025).
The Bill establishes a comprehensive legal and regulatory framework for the operation of Virtual Asset Service Providers (VASPs) in Kenya.
It seeks to promote innovation in digital finance while safeguarding consumers and maintaining the integrity of the financial system.
In the Bill, any person or company offering virtual asset services in or from Kenya will be required to obtain a license from a designated regulatory authority.
The licensing framework ensures that all operators are compliant with set standards, including anti-money laundering, consumer protection, and data privacy requirements.
The Bill defines a “virtual asset service provider” as a company licensed under the Act to carry on the business of virtual asset services. It further stipulates that only companies limited by shares either local or foreign entities registered under the Companies Act are eligible to apply for a license.
To protect investors, Part IV of the Bill mandates VASPs to maintain adequate safeguards for client assets, obtain appropriate insurance cover, and maintain bank accounts in Kenya to enable effective monitoring and oversight.
To enhance accountability and transparency, the Bill requires service providers to establish internal policies for managing conflicts of interest and to maintain detailed operational records.
CBK
These measures aim to prevent fraudulent activities and financial losses similar to those witnessed in past unregulated platforms.
Part V of the Bill strengthens the enforcement capacity of regulatory bodies by granting them powers to supervise, inspect, and impose penalties for non-compliance.
It also allows for collaboration between regulators and other competent authorities to promote financial stability and international cooperation in combating illicit financial flows.
CBK-Governor-Kamau-Thugge
Further, the Bill introduces amendments to align key definitions and compliance obligations with international financial standards. Notably, it redefines AML frameworks to encompass anti-money laundering, countering the financing of terrorism, and countering proliferation financing (AML/CFT/CPF).
The Bill also clarifies the classification of virtual service tokens, stating that such tokens are not considered virtual assets under the Act and that entities dealing exclusively in virtual service tokens will not require licensing.
Once enacted, the Virtual Asset Service Providers Bill, 2025 will create a transparent and secure environment for digital financial activities, safeguard public interest, and attract investment in Kenya’s fast-evolving fintech landscape.
Paul Arithi 
The Act provides the legislative framework for regulating and supervising Virtual Asset Service Providers (VASPs). 
The Act provides for CBK and CMA to license VASPs in accordance with the services listed in the First Schedule to the Act.
Consequently, the licensing of VASPs will commence upon issuance of these Regulations. Currently CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya.
