The Central Bank of Kenya (CBK) announced that the licensing of Virtual Asset Service Providers (VASPs) in Kenya is on hold until the National Treasury issues new regulations for the Virtual Assets Service Providers Act, 2025. Despite the Act being in effect since November 4, no firm is currently authorized to operate as a licensed VASP.

• The regulations are being developed by the Treasury Cabinet Secretary, John Mbadi, with advice from the CBK and the Capital Markets Authority (CMA).
• The CBK and CMA have confirmed that they have not yet licensed any VASPs under the Act.
• The Virtual Assets Service Providers Act, 2025, which took effect on November 4, is Kenya's first comprehensive legal framework for digital asset service providers.
• Kenyans hold an estimated USD 1.2 trillion (Ksh155 trillion) in virtual assets, with the new legislation aiming to prevent money laundering and terror financing.

The Communications Authority of Kenya (CA) has refuted allegations that it authorized telecommunication providers to collect biometric data during SIM card registration, labeling these claims as unfounded.

• The CA clarified on Tuesday, November 18, that it has not issued any directives for biometric data collection, emphasizing the regulations are for protecting Kenyans from SIM-related fraud.
• The Authority defined biometric data to include elements like fingerprints and retinal scans but stressed that these would not be collected.
• The CA also dismissed claims of allowing arbitrary SIM card suspensions, stating that suspensions would only occur for false information or ignored registration requirements, with prior notice given.