The Central Bank of Kenya (CBK) has announced the commencement of the Virtual Assets Service Providers Act, 2025.

In a notice, CBK said 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 Act 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.

CBK and CMA Powers

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.

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Treasury CS Role

Accordingly, the Cabinet Secretary, National Treasury, pursuant to the Act and upon the advice of CBK and CMA, is developing and shall issue Regulations for further guidance on implementation of the Act.

Consequently, the licensing of VASPs will commence upon issuance of these Regulations.

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

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CBK has activated the Virtual Assets Service Providers Act, 2025 to regulate virtual asset service providers. PHOTO/CBK.