NAIROBI, Kenya-For years, crypto-related firms have battled regulatory uncertainty in Kenya, with some, like Worldcoin, facing outright suspension and investigations over privacy concerns and a lack of clear licensing structures.
These hurdles, sector players argue, have slowed innovation and bred public distrust in a rapidly evolving sector.
The Virtual Assets Chamber of Commerce (VACC) is backing the proposed Virtual Asset Service Provider (VASP) Bill, 2025, calling it a breakthrough moment for Kenya’s digital economy.
The legislation would introduce much-needed clarity on licensing, compliance, and registration of crypto platforms cornerstones for building trust.
“Kenya is more than ready,” said VACC Chair Tony Olendo.
“People are already using crypto, and even banks are warming up to it. Regulation is the bridge between caution and adoption.”
Dominic Mulinda, Chief Product Officer at Honey Coin, echoed the sentiment, warning that the lack of oversight leaves users vulnerable to scams and phishing.
“Bad actors thrive in chaos,” he said.
“The bill won’t fix everything, but it’s a solid start.”
While Kenya ranks 28th globally in adoption, it trails African leaders like Nigeria and Ethiopia.
Still, Sub-Saharan Africa tops the world in decentralized finance (DeFi) use, with citizens leveraging crypto for remittances, business payments, and inflation protection.
Stablecoins such as USDT and USDC now account for 43% of transaction volume in the region, driven by limited access to U.S. dollars and weak local currencies.
If passed, the bill could unlock integrations with platforms like M-Pesa and fast-track innovations like the Kenya Digital Exchange.
VACC is also lobbying for friendlier tax policies to foster local blockchain innovation.
Cryptocurrencies, are digital or virtual currencies that use cryptography (advanced math and coding) to secure transactions, control the creation of new units, and verify transfers on a decentralized network.
