CBK Issues Update on Licensing of Crypto Firms
The Central Bank of Kenya and the Capital Markets Authority are in charge of regulating and licensing all companies dealing with digital assets...
āØ Key Highlights
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.
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Govt Clarifies SIM Registration Data Rules; CBK Halts Crypto Firm Licensing - November 2025
The Communications Authority of Kenya (CA) has refuted allegations that it authorized telecommunication providers to collect biometric data during SIM card registration, labeling the claims as unfounded. The government also stated that it will not require DNA for SIM card registration. In a separate regulatory update, the Central Bank of Kenya (CBK) announced that the licensing of Virtual Asset Service Providers (VASPs) is on hold. The hold will remain until the National Treasury issues new regulations for the Virtual Assets Service Providers Act, 2025. The CBK clarified that despite the Act being in effect since November 4, no firm is currently authorized to operate as a licensed VASP.
