Kenya is implementing a new Virtual Asset Service Providers (VASP) Act, 2025, aiming to regulate cryptocurrencies and digital assets, which has sparked a potential clash with industry players over costs and compliance measures.

• The framework requires digital asset service providers to obtain licences, establish a local presence, and adhere to stricter governance, consumer protection, and anti-money laundering rules.
• Key regulators involved are the Capital Markets Authority (CMA) and the Central Bank of Kenya.
• Industry stakeholders, like Valr's Country Manager Peter Mwangi, warn that proposed requirements, such as capital adequacy and transaction levies, could hinder innovation and investment despite Kenya's ambition to become a digital asset hub.