NAIROBI, Kenya – Kenya’s Parliament has approved a bill to regulate digital assets such as cryptocurrencies and stablecoins, marking a major step toward formalising one of the country’s fastest-growing financial sectors.
The Virtual Asset Service Providers Bill, passed last week, seeks to create a clear regulatory framework for the digital assets industry to attract investment and curb misuse of the technology, said Kuria Kimani, chair of the National Assembly’s Finance Committee.
Once signed into law by President William Ruto, Kenya will join South Africa as one of the only African nations with comprehensive legislation governing virtual assets.
“We are hoping that Kenya can now be the gateway into Africa,” Kimani said. “Most young people between 18 and 35 years are already using virtual assets for trading, payments, investment, and business.”
Under the proposed law, the Central Bank of Kenya (CBK) will be responsible for licensing stablecoin issuers and other virtual asset providers, while the Capital Markets Authority (CMA) will regulate cryptocurrency exchanges and trading platforms.
The government’s move comes amid growing global interest in U.S. dollar-backed stablecoins, which regulators have warned could threaten weaker national currencies.
Kenya hopes that providing legal clarity will make it a magnet for major global players such as Binance and Coinbase, which have previously expressed interest in operating in the country.
Kimani said the law draws lessons from international best practices, including those adopted in the United States and the United Kingdom, to balance innovation with consumer protection and financial stability.
Kenya has long been recognised as a leader in financial innovation thanks to M-Pesa, the mobile money service operated by Safaricom, which has transformed payments and digital finance across Africa.
The new legislation builds on that legacy, potentially positioning Nairobi as a regional hub for blockchain and fintech investment.
While the global digital assets industry has expanded rapidly over the past decade, regulators have struggled to prevent its misuse for money laundering, tax evasion, and fraud.
Kenya’s new framework seeks to address those risks while unlocking economic opportunities in a sector dominated by young, tech-savvy entrepreneurs.
