CBK, CMA await Mbadi's brief for Virtual Asset law to take effect

The Act, which became effective on November 4, 2025, provides the legislative framework for regulating and supervising Virtual Asset Service Providers (VASPs).

Treasury Cabinet Secretary (CS) John Mbadi is set to issue regulations on its implementation, with the advice of the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA).

The Act outlines obligations of VASPs in the prevention of Money Laundering, Terrorism Financing, and Proliferation Financing.

The Act also sets out the Central Bank as the licensing authority for the issuance of stablecoins and other virtual assets, while the capital markets regulator will license those who wish to operate crypto exchanges and other trading platforms.

Kenyan lawmakers passed the bill on October 13 to regulate digital assets like cryptocurrencies, aiming to boost investment in the sector by establishing clear rules for the emerging industry.

MP Kuria Kimani, the chairman of the finance committee in the National Assembly, said the Act is seeking to address worries over the lack of clear regulations to govern the sector.

Currently, CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya.

MP Kimani said that the Act has been borrowed from established practices in other countries like the United States and Britain.

Kenya is recognised for pioneering mobile-phone-based financial services, with its M-Pesa technology, operated by telecoms company Safaricom, providing services like money transfer, savings and investments to tens of millions of people.