Just a few years back, cryptocurrencies and virtual assets were something that did not come under any kind of regulations in any country.
Bitcoin was mostly treated as a secret currency of the dark web. However, fast forward to 2025, today, crypto regulations are one of the most important things that governments all across the globe are dealing with.
From Bhutan to the USA and from the Middle East to the UK, crypto regulations are skyrocketing. Governments are rushing to create a system that gives more recognition to cryptocurrencies and tightens the rules around them. And this time, Kenya’s Parliament has decided to join the race by setting up new rules for virtual assets.
What do we know now?
According to a senior member on Monday, Kenyan lawmakers have passed a measure to regulate digital assets like cryptocurrencies in an effort to increase investments in the field by establishing clear guidelines for the nascent sector, Reuters reported.
Kuria Kimani, the head of the national assembly’s finance committee, stated that lawmakers passed the Virtual Asset Service Providers Bill last week in an effort to allay concerns about the absence of precise rules governing the industry.
What does this mean?
He said that President William Ruto must now sign it into law, making the East African country one step closer to being the only one in Africa having rules governing the digital assets sector, along with South Africa.
Also Read: Kenya Revenue Authority To Roll Out Real-Time Tax System Tied to Cryptocurrency
According to the legislation, the capital markets regulator will grant licenses to individuals who want to run cryptocurrency exchanges and other trading platforms, while the central bank will serve as the licensing authority for the creation of stablecoins and other virtual assets.
The government’s action comes as nations prepare for a surge in stablecoins backed by the US dollar that might threaten the currencies of less developed nations, as global regulators have warned.
Crypto business to flourish in Kenya?
According to Kimani, who cited previous discussions between the government and cryptocurrency exchanges like Binance and Coinbase, the anticipated legal certainty is likely to draw more investments into the financial technology industry.
“We are hoping that Kenya can now be the gateway into Africa,” he said. “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.”
Even though this means that new crypto businesses can flourish in the country, Kenya has also been very straightforward and strict with any kind of unlawful activities related to digital assets. This is done to protect the users of cryptocurrencies and keep their money safe.
UnoCrypto earlier reported in May that Sam Altman’s World project has been ordered by the Nairobi High Court to remove all iris scans and other biometric information collected in Kenya.
The decision is the latest in a string of court cases challenging the cryptocurrency startup’s data harvesting practices. It comes after worries that the World deceived participants with token incentives and did not have the appropriate permission.
So, while the global digital assets market has expanded rapidly in the past ten years, governments are grappling with how to keep suspicious activities away, which has raised concerns about regulation.
Also Read: Kenya Collects $77.5 Million in Taxes from 384 Crypto Traders Amid Growing Focus In Crypto