The Central Bank of Kenya (CBK) published a public notice confirming that the Virtual Assets Service Providers Act, 2025 has commenced and now provides Kenya’s legislative framework for regulating and supervising Virtual Asset Service Providers (VASPs). The notice also clarifies that licensing has not yet started and will only commence once implementing regulations are issued. Under the Act, CBK and the Capital Markets Authority (CMA) are designated as the regulators responsible for licensing, supervising, and regulating VASPs in Kenya, with licensing to be conducted in line with the services listed in the Act’s First Schedule. The Act also sets out VASP obligations related to preventing money laundering, terrorism financing, and proliferation financing, and CBK and CMA confirmed they have not licensed any VASPs under the Act to operate in or from Kenya. Implementing regulations are being developed by the Cabinet Secretary, National Treasury, pursuant to the Act and on the advice of CBK and CMA, and VASP licensing will commence upon issuance of these regulations.
Central Bank of Kenya 2025-11-18
Central Bank of Kenya announces Virtual Assets Service Providers Act is in force and VASP licensing will start after regulations are issued
The Central Bank of Kenya announced the commencement of the Virtual Assets Service Providers Act, 2025, establishing a regulatory framework for Virtual Asset Service Providers (VASPs). Licensing will begin once implementing regulations are issued, with the Central Bank of Kenya and the Capital Markets Authority as regulators. The Act outlines VASP obligations for preventing money laundering, terrorism financing, and proliferation financing.