Kenya’s Parliament has approved a new bill regulating the digital asset sector, aiming to transform the country into a crypto-friendly hub.
According to Reuters, lawmakers passed the Virtual Asset Service Providers (VASP) Bill, which formally defines the digital asset market while seeking to attract investment, establish trading standards, and enhance consumer protection.
Under the new law, the Central Bank of Kenya will be authorized to license the issuance of stablecoins and other virtual assets, while the Capital Markets Authority (CMA) will oversee the licensing of crypto exchanges and trading platforms. With this step, Kenya joins the short list of African nations providing a legal framework for digital assets.
Kenya’s move follows similar actions by Nigeria and South Africa. Experts view this as a turning point for the institutionalization of Africa’s digital asset ecosystem. The new legislation is expected to boost investor confidence and accelerate the entry of international crypto firms into Kenya’s market.
