Kenya's Parliament has passed the Virtual Asset Service Providers Bill, 2025, establishing the country’s first comprehensive regulatory framework for cryptocurrency businesses. This landmark legislation aims to license and supervise crypto operations while avoiding the creation of a new, standalone regulatory body and integrating supervision under existing institutions.

• The bill guts a controversial provision that would have given a Binance-linked lobby group a seat on the national regulator, placing supervision under Central Bank of Kenya (CBK) and Capital Markets Authority (CMA).
• All licensed virtual-asset providers must maintain a physical office in the country and appoint a board of at least three natural-person directors to curb shell operations.
• Violations can lead to fines of up to KSh 25 million or five years in prison, with existing operators having a 12-month grace period to comply.