Kenya Passes Landmark Digital Assets Bill, Paving the Way for Stablecoin and Crypto Regulation

• Kenya has passed a landmark digital assets bill, offering legal clarity over crypto and other digital asset regulation.

• The Central Bank of Kenya will serve as the licensing authority for the issuance of stablecoins and other virtual assets.

Global crypto adoption and regulation are gaining momentum, with Kenya taking the latest step towards crypto regulation.

In 2025, Kenya made significant strides in the crypto space, announcing plans to launch the Kenya coin, as reported by EMCryptohub.

Kenya Parliament passes digital assets regulation bill.

In a significant development, Kenyan lawmakers have passed a landmark bill to regulate digital assets such as cryptocurrencies, signalling the country’s ambition to become a central hub for crypto and fintech innovation in Africa.

The Virtual Asset Service Providers Bill was enacted last week by Parliament, according to Kuria Kimani, the chairman of the National Assembly’s finance committee. The Bill now awaits President William Ruto’s signature to become law.

This legislation addresses growing concerns over the lack of clear rules for the rapidly expanding digital asset sector. Once enacted, Kenya will join South Africa as one of the only African nations with formal legal frameworks for stablecoins, cryptocurrency exchanges, and other virtual asset service providers.

What the Bill is all about and the potential implications.

Under the new law, the Central Bank of Kenya will serve as the licensing authority for the issuance of stablecoins and other virtual assets. Meanwhile, the Capital Markets Authority will regulate crypto exchanges and trading platforms. This division of responsibilities aims to create a clear and robust regulatory environment for businesses and investors.

The move comes amid rising global interest in U.S. dollar-backed stablecoins, which international regulators have warned could pose challenges for less developed economies if left unchecked. By establishing clear rules, Kenya hopes to attract more investment into its fintech ecosystem. Kuria Kimani noted that crypto exchanges such as Binance and Coinbase have already held discussions with the government about potential opportunities once legal clarity is achieved.

“We are hoping that Kenya can now be the gateway into Africa,”

Kimani said.

“Most young people between 18 and 35 years of age are using virtual assets for trading, settling payments, and as a way of investing or doing business.”

Kenya’s digital assets bill draws inspiration from established regulatory practices in countries like the United States and the United Kingdom. Lawmakers believe this approach will balance innovation with safeguards against illicit activities, such as money laundering and terrorism financing, that often exploit the anonymity of blockchain systems.

Kenya’s leadership in fintech is not new. The country gained global recognition through M-Pesa, the mobile-phone-based money transfer and financial services platform operated by Safaricom. M-Pesa has transformed how tens of millions of people in Kenya access financial services, making the country a natural frontier for crypto adoption and innovation.

Once signed into law, the Virtual Asset Service Providers Act is expected to boost investor confidence, attract major global players, and solidify Kenya’s position as a key gateway for digital finance in Africa.

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