How Crypto Bill is a game-changer in the digital asset world
By Caleb Korir, July 22, 2025For years, cryptocurrencies (virtual assets) have made headlines for the wrong reasons, especially with scams that have punctuated the sector.
However, there’s light at the end of the tunnel, giving crypto players, innovators and business people a reason to smile.
Since its arrival in Kenya in 2013, cryptocurrencies have been met with scepticism and rejection from traditional financial institutions.
In 2015, the Central Bank of Kenya (CBK) issued a cautionary notice to the public against the use of crypto, especially Bitcoin, since it was unregulated, and other concerns, including fraud and its volatility.
This, however, did not deter crypto enthusiasts, prompting them to switch to peer-to-peer usage.
Ease of payment
After years of rejection and distaste for virtual assets, the government has finally decided to introduce regulations into the sector to fuel innovation and financial inclusion, thereby resulting in the drafting of the Virtual Assets Service Providers (VASP) Bill, 2025, that is being sponsored by Molo MP Kimani Kuria and now awaits its third reading in parliament.
The Bill seeks to ensure any entity offering virtual asset services, including wallet providers, exchanges, brokers, investment advisers, virtual assets managers, virtual assets tokenisation, and even crypto miners, obtain a license from Capital Markets Authority (CMA), Central Bank of Kenya (CBK) or the proposed Virtual Assets Regulatory Authority (VARA).
Tony Olendo, the Chairman of Virtual Assets Chamber of Commerce (VACC) and co-founder of ViFi Labs, a virtual finance company, says the regulation of the virtual assets sector is a step in the right direction in the realisation of the benefits that come with crypto.
He says, many people look at crypto from a currency speculation perspective, overlooking the immense opportunities that crypto technology can bring to the economy.
He says stablecoins, for instance, can solve the problem of dollar shortages because they’re widely accepted.
“Speculation is catchy, that is what makes headlines, and nobody wants to talk about some crypto options, which are digital dollars that have surpassed Visa Card and MasterCard volumes. That is a real practical use case. People in other African countries are using crypto to be able to buy goods from China and reducing transaction time from three days to 30 seconds,” Orlando says, adding that with crypto wallets, remittance costs will be about two per cent, unlike traditional financial institutions, which charge between five to 10 per cent of the transaction.
Attracting investments
VACC boss is bullish that the regulation will give rise to startups seeking to tap into crypto technology to solve day-to-day problems and attract investors who might have shied away from investing in the sector, which was unregulated.
“We’ll see many startups emerging and acquiring licenses. With a license, you gain the ability to interact with banks and users. Investors will begin to view Kenya in a very different light, and that will be a key driver of growth. With incoming regulation, we also expect the traditional financial sector to finally diversify its portfolio and engage with digital assets,” he says.
He adds, “We expect to see significant venture capital flowing into the country. The developer community need to prepare and start building, not just for Kenya, but for the world. Crypto enables global access, and talent is everywhere. This bill presents a major opportunity for Kenyan developers.”
Solving liquidity challenges
Olendo says cryptocurrency will solve liquidity challenges through tokenisation, which allows businesses or individuals to convert real-world assets like real estate, land or even shares into digital tokens that can be sold or traded on blockchain platforms, citing how it’s being used in foreign markets.
“44 per cent of Wall Street funds have exposure to crypto, and 10 per cent of their portfolios are in crypto. But none of the funds in Kenya have any crypto exposure. Our financial sector is being left behind due to a lack of regulation,” he observes.
The crypto expert says that while the bill awaits the third reading, Wall Street, Visa, and real estate are already moving into this space.
The main reason is that some cryptos, such as stablecoins, are now tradeable with securities on top of blockchain.
“With crypto, people are tokenising assets, and the key driver is liquidity because crypto doesn’t sleep. You can trade 24 hours a day for whatever volume you want,” he adds.