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Kenyan lawmakers have approved a new bill aimed at regulating digital assets such as cryptocurrencies, marking a major step toward formalizing the country’s growing digital finance sector. The Virtual Asset Service Providers Bill, passed last week, is expected to bring clarity to how cryptocurrencies and related technologies are used and traded in Kenya. According to Kuria Kimani, the chairman of the National Assembly’s Finance Committee, the law seeks to create a clear regulatory framework that will attract more investments and protect users from risks linked to the largely unregulated crypto industry.
The bill, which now awaits President William Ruto’s signature to become law, positions Kenya as one of the few African nations with comprehensive digital asset regulations, alongside South Africa. Once enacted, the Central Bank of Kenya will be responsible for licensing and overseeing the issuance of virtual assets such as stablecoins, while the Capital Markets Authority will handle the regulation of cryptocurrency exchanges and trading platforms.
This development comes as global financial authorities express growing concern about the rapid rise of U.S. dollar-backed stablecoins, warning that they could weaken currencies in developing nations. Kenya’s decision to establish clear rules is seen as both a proactive and strategic move to manage these emerging challenges while encouraging innovation and investment in the sector.
Kuria Kimani said the bill aims to make Kenya a leading destination for digital finance in Africa. He revealed that global crypto exchanges such as Binance and Coinbase have already held discussions with the government, showing interest in operating in the country once the law takes effect. “We are hoping that Kenya can now become the gateway into Africa,” he said. “Many young people between 18 and 35 years are already using virtual assets for trading, making payments, and investing. This law will help support them while ensuring safety and accountability.”
Kenya has long been known for its innovation in mobile-based financial services. The success of M-Pesa, a mobile money platform operated by Safaricom, revolutionized how Kenyans send, save, and invest money. With the new law, the government hopes to build on that legacy by creating a safe and structured environment for digital assets to thrive.
Globally, the cryptocurrency industry has expanded rapidly over the past decade, but regulation has lagged behind. Many governments continue to struggle with finding the right balance between supporting technological innovation and preventing misuse by criminals who exploit the anonymity of blockchain systems. Kenya’s legislation draws lessons from established regulatory frameworks in countries like the United States and the United Kingdom, adapting them to fit local needs.
The introduction of this law is expected to boost investor confidence, encourage startups, and position Kenya as a major player in Africa’s digital economy. It also aligns with the country’s broader goal of becoming a hub for financial technology innovation. For everyday users, it promises greater protection, transparency, and opportunities in an industry that continues to redefine how people interact with money and digital value.