Kenya is advancing efforts to formalise cryptocurrency and digital asset regulation, with the National Assembly approving the Virtual Asset Service Providers (VASP) Bill at committee stage.

The move now sets the stage for the bill’s final reading and eventual presidential assent.

Treasury Cabinet Secretary John Mbadi said the framework is designed to regulate VASPs while addressing risks associated with digital assets, including money laundering and fraud. Under the proposed legislation, the Central Bank of Kenya and the Capital Markets Authority will oversee licensing and supervision of virtual asset providers. The regulatory scope will cover stablecoins, tokenised assets, trading platforms, cybersecurity, advertising, and anti-money laundering compliance.

“This is a key step towards formalising the cryptocurrency sector while safeguarding the financial system,” said Dennis Beru, journalist and analyst on East African financial trends.

The bill signals Kenya’s commitment to fostering innovation in the financial sector while ensuring investor protection and transparency in the rapidly growing digital asset market.

–ChannelAfrica–