Kenyan lawmakers have approved a bill to regulate digital assets, including cryptocurrencies.
The move is aimed at boosting investment and providing clarity for the fast-growing sector, a senior lawmaker announced on Monday.
Kuria Kimani, chairman of the National Assembly’s Finance Committee, confirmed that legislators passed the Virtual Asset Service Providers Bill last week.
The legislation seeks to address the absence of clear rules governing the crypto industry and create a structured framework for its operation, Reuters reported.
“This move positions Kenya closer to joining nations like South Africa as one of the few African countries with formal laws for the digital assets industry,” Kimani said.
He added that the bill now awaits President William Ruto’s signature to become law.
Under the new act, the Central Bank of Kenya will serve as the licensing authority for issuing stablecoins and other virtual assets.
The Capital Markets Authority will oversee the licensing of crypto exchanges and trading platforms.
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The government’s action comes as global regulators warn that the growing popularity of U.S. dollar-backed stablecoins could threaten the stability of weaker currencies in developing economies.
According to Kimani, the new legislation is expected to bring much-needed legal certainty and attract investments into Kenya’s rapidly expanding fintech space.
He noted that international exchanges such as Binance and Coinbase have already expressed interest in the Kenyan market, saying, “We are hoping that Kenya can now be the gateway into Africa. Most of the young people between 18 and 35 years of age are now using virtual assets for trading, settling payments, and as a way of investment or doing business.”
While the global digital assets market has experienced tremendous growth over the past decade, governments continue to grapple with how to regulate it effectively and prevent misuse by criminals.
Kimani said Kenya’s law draws inspiration from established regulatory models in countries like the United States and the United Kingdom.
Kenya has long been recognized as a pioneer in mobile-based financial services, with M-Pesa, operated by Safaricom, enabling tens of millions of people to transfer money, save, and invest through their mobile phones.
By passing this law, Kenya aims to build on that legacy, cementing its role as a regional leader in digital finance and innovation.
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Image Credit: Crypto Times
