The Central Bank of Kenya (CBK) has officially enforced the Virtual Assets Service Providers Act, 2025, marking a significant step in regulating the growing cryptocurrency and digital asset sector in the country.

According to a notice issued by CBK on its official X account on Tuesday, November 18, 2025, the law, which was gazetted on October 21, 2025, came into effect on November 4, 2025, and provides a legal framework for overseeing Virtual Asset Service Providers (VASPs).

However, CBK indicated that it is waiting for final guidance from Treasury Cabinet Secretary John Mbadi before issuing further guidance and approving the operation of virtual asset service providers.

“The Virtual Assets Service Providers Act, 2025 (Act. No. 20 of 2025), which was gazetted on October 21, 2025, became effective on November 4, 2025,” the statement reads

The law aims to ensure that VASPs operate transparently and responsibly while complying with measures to prevent money laundering, terrorism financing, and proliferation financing.

“The Virtual Assets Service Providers Act, 2025 (Act. No. 20 of 2025) provides the legislative framework for regulating and supervising Virtual Asset Service Providers (VASPs). The Act further outlines obligations of VASPs in the prevention of Money Laundering, Terrorism Financing, and Proliferation Financing,” the statement read.

Under the Act, CBK and the Capital Markets Authority (CMA) have been designated as the regulators responsible for licensing, supervising, and monitoring VASPs in Kenya.

“The Act designates the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as the regulators responsible for licensing, supervising, and regulating VASPs in Kenya. The Act provides for CBK and CMA to license VASPs in accordance with the services listed in the First Schedule to the Act,” the statement added.

The National Treasury is working closely with CBK and CMA to develop regulations that will guide the implementation of the Act. Only after these regulations are issued will licensing of VASPs begin. The CBK emphasised that currently, no VASPs have been licensed under the Act to operate in or from Kenya.

“Currently, CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya,” the statement read.

This move comes as Kenya seeks to provide clarity and protection for both investors and operators in the virtual asset space. The law is expected to encourage responsible growth in digital finance while safeguarding the country’s financial system against illicit activities.