Kenya passes bill to regulate Bitcoin and cryptocurrencies

Key Takeaways

Kenya has officially enacted legislation regulating Bitcoin and other cryptocurrencies.
The Virtual Asset Service Providers Bill assigns regulatory authority over Kenya’s crypto sector to the Central Bank and Capital Markets Authority.

Kenya’s parliament has approved a landmark bill to regulate Bitcoin and other crypto assets, a move that would position the East African nation as a leader in Africa’s fintech landscape.

The Virtual Asset Service Providers Bill designates the Central Bank of Kenya to license issuers of stablecoins and virtual assets, while the Capital Markets Authority will oversee crypto exchanges and trading platforms. The legislation grants formal legal recognition to digital assets.

The move aims to encourage innovation in virtual asset services while attracting international investments in Kenya’s digital economy. The regulatory framework addresses concerns around fraud and market manipulation that have previously hindered crypto adoption in the region.

Kenya’s decision aligns with broader global trends where emerging markets are embracing Bitcoin and crypto to enhance financial inclusion. The legislation establishes clear guidelines for crypto exchanges and service providers operating within the country’s borders.