Treasury Cabinet Secretary John Mbadi announced the “National Policy on Virtual Assets and Virtual Asset Service Providers”, open for public comment until January 24.
Kenya is taking decisive steps to regulate cryptocurrencies as the government moves from cautious warnings to a more structured approach. Treasury Cabinet Secretary John Mbadi has confirmed his intention to introduce a legal and regulatory framework aimed at fostering a fair and stable crypto market. The move is outlined in the “National Policy on Virtual Assets and Virtual Asset Service Providers,” a draft proposal open for public comment until January 24.
The policy proposes comprehensive regulations for virtual assets, addressing key concerns such as money laundering, terrorist financing and consumer protection. It aims to establish clear standards and procedures to govern virtual asset service providers, thereby placing Kenya on a similar path to other African countries like South Africa and Nigeria, which have adopted the regulation of cryptography.
Kenya’s caution around cryptocurrencies dates back to a 2015 warning from the Central Bank of Kenya (CBK), highlighting risks such as fraud and lack of legal safeguards. However, a significant change occurred in September 2023, when the country completed an assessment of money laundering risks related to virtual assets. With stablecoins accounting for nearly half of the region’s trading volume, Kenya’s proactive regulatory approach could solidify its leading role in Sub-Saharan Africa’s crypto adoption landscape.
