Kenya Plans Crypto Regulations and Asks for Public Input

Kenya is taking a significant step toward embracing the cryptocurrency industry by seeking public input on a proposed regulatory framework.

The National Treasury and Economic Planning Department has released two key documents for consultation, inviting citizens and stakeholders to provide feedback by January 24.

The first document, the “Draft National Policy on Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs),” outlines plans to establish a fair and transparent market for virtual assets while ensuring robust governance for all participants. The second, the “Virtual Asset Service Providers Bill, 2025,” focuses on creating clear regulatory guidelines, licensing requirements, and obligations for VASPs to combat issues such as money laundering and terrorism financing.

This move signals a notable shift in Kenya’s stance on cryptocurrencies. Once opposed to digital assets—cryptocurrencies were banned as legal tender in 2015—the government is now positioning itself to regulate and harness the industry’s potential. Around 2.8 million Kenyans are already involved in crypto, reflecting the sector’s growing influence in the country.

Cabinet Secretary for Treasury and Economic Planning John Mbadi highlighted the dynamic opportunities presented by virtual assets while acknowledging the associated risks, such as fraud and financial crime. He stressed that these challenges can be addressed through a well-structured regulatory system.

Kenya’s pivot comes in response to advice from the International Monetary Fund (IMF), which recommended that the country establish a clear legislative framework to regulate digital assets, protect consumers, and promote financial literacy. With this new direction, Kenya aims to create a safer and more inclusive environment for cryptocurrency innovation and adoption.