Kenya: Virtual Assets Service Providers Bill 2025 including operational license requirement was announced

On 9 January 2025, the Kenyan government announced its intention to introduce the Virtual Assets Service Providers Bill 2025, establishing a licensing framework for virtual asset service providers (VASPs). The Bill requires entities to obtain a licence from the relevant regulatory authority, which includes the Central Bank of Kenya, the Capital Markets Authority, and any other body designated by the Cabinet Secretary through a notice in the Kenya Gazette. These authorities are responsible for licensing, regulating, and supervising VASPs, ensuring compliance with anti-money laundering (AML), counter-terrorism financing (CFT), and proliferation financing measures. Applicants must demonstrate financial stability, operational integrity, and adherence to cybersecurity requirements. Licences are subject to conditions and may be suspended or revoked for non-compliance, with penalties imposed for operating without a licence or providing false information.