The CBK has indicated that the issuance of licenses to Virtual Asset Service Providers shall not commence until the National Treasury publishes new regulations intended to operationalise the Virtual Assets Service Providers Act, 2025.
CBK said in a public notice on Tuesday, November 18, Treasury Cabinet Secretary John Mbadi is currently working on the regulations informed by proposals from CBK and the Capital Markets Authority (CMA).
This essentially means that, even as the law already took effect, no company is legally authorized to operate as a licensed VASP in or from Kenya until the regulations are formally gazetted.
“The Cabinet Secretary, National Treasury, pursuant to the Act and upon the advice of CBK and CMA, is developing and shall issue Regulations for further guidance on implementation of the Act,” the CBK statement said.
Both regulators have also confirmed that no VASP licences have been issued so far.
“The licensing of VASPs will commence upon issuance of these Regulations. Currently, CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya,” the notice added.
The update comes shortly after the Virtual Assets Service Providers Act, 2025 officially took effect on November 4, after its gazettement on October 21. The Act represents Kenya’s first comprehensive legal framework for digital asset companies, including token issuers, wallet providers, and cryptocurrency exchanges.
The law institutes strict measures that would prevent money laundering, terrorism financing, and other related financial crimes in the realm of virtual assets.
Licensing categories will be related to the type of activities related to virtual assets that a company operates, as outlined in the First Schedule of the Act, such as operating crypto exchanges, transfer services, or digital wallet management.
To help it meet global standards as set by the FATF, Kenya is working on developing accompanying regulations for digital assets.
It is estimated that Kenyans hold about USD 1.2 trillion (KSh 155 trillion) in virtual assets, which makes clear regulations critical to protecting investors and supporting innovation in the sector.
A report by the International Monetary Fund showed that Kenya used stablecoins to service international debt obligations during a period of U.S. dollar shortage, and to hedge against volatility in the shilling.
