VASP Explained: Kenya’s New Crypto Rulebook
It’s not law until assent and subsidiary rules land, but the direction of travel is now clear: exchanges and wallet firms will need licences, client money must be ring-fenced, and the Central Bank of Kenya (CBK) and Capital Markets Authority (CMA) will coordinate oversight. For..
✨ Key Highlights
Kenya's Parliament has passed the VASP Bill, a significant move to regulate digital assets like Bitcoin, shifting them from a regulatory grey area to a supervised marketplace. While awaiting presidential assent and detailed regulations, the bill signals a new era for crypto firms in Kenya, requiring licenses, segregation of client funds, and coordinated oversight by the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA).
- The Finance Act 2025 replaced the 3% Digital Asset Tax with a 10% excise on platform fees.
- Key organizations involved are the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA).
- The new regulations aim to tackle the biggest retail risk in crypto: custody, by requiring audited proof that customer funds are held separately from company balances.
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