Kenya Capital Markets Authority confirms VASP licensing will start once implementing regulations are issued under the Virtual Assets Service Providers Act

The Kenya Capital Markets Authority (CMA) published a public notice on the commencement of the Virtual Assets Service Providers Act, 2025, which took effect on November 4, 2025 and establishes a framework for regulating and supervising Virtual Asset Service Providers (VASPs). The notice confirms that licensing of VASPs will begin only after implementing regulations are issued and that no VASPs have yet been licensed under the Act to operate in or from Kenya. Under the Act, the Central Bank of Kenya (CBK) and the CMA are designated as the regulators responsible for licensing, supervising and regulating VASPs, with licensing to cover the services listed in the Act’s First Schedule. The framework also sets out VASP obligations related to preventing money laundering, terrorism financing and proliferation financing, while the Cabinet Secretary for the National Treasury is developing regulations for implementation pursuant to the Act and on the advice of CBK and CMA.