Kenya's crypto industry has entered a new era of regulation as President William Ruto signed the Virtual Asset Service Providers (VASP) Bill, 2025 into law. This legislation aims to provide a legal framework for cryptocurrency activities, enhance user protection, and curb illicit financial flows in the country.

• The new law, officially the Virtual Asset Service Providers Act, 2025, ends the unregulated "wild west" for crypto in Kenya.
• The Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK) will be the primary regulatory bodies, overseeing investment and payment/custody-related activities, respectively.
• Companies offering crypto services in Kenya must now be licensed and adhere to strict obligations, including "fit and proper" assessments for directors, customer asset protection, capital requirements, and robust cybersecurity measures.
• Violations of the Act carry severe penalties, including fines of up to KES 20 million for individuals or companies, or imprisonment for up to seven years for individuals.