Our Respondents reporter
Nairobi, Kenya. Kenyan lawmakers have passed a landmark bill to regulate digital assets such as cryptocurrencies, a move aimed at attracting investment and bringing clarity to the fast-growing sector in Africa.
The Virtual Asset Service Providers Bill, approved by Parliament last week, seeks to address concerns over the absence of a clear regulatory framework for virtual assets.
The legislation was championed by Kuria Kimani, Chairperson of the National Assembly’s Finance Committee.
Once signed by President William Ruto, the new law will position Kenya alongside South Africa as one of the few African nations with formal legislation governing the digital assets industry.
“We are hoping that Kenya can now be the gateway into Africa,” Kimani said.
According to Kimani, Most of the young people between 18 and 35 years of age are using virtual assets for trading, settling payments, and as a way of investment or doing business.
Under the new act, the Central Bank of Kenya will serve as the licensing authority for the issuance of stablecoins and other virtual assets.
Meanwhile, the Capital Markets Authority will regulate entities operating cryptocurrency exchanges and trading platforms.
The legislation comes amid growing global interest in U.S. dollar-backed stablecoins, which international regulators have warned could undermine the monetary stability of developing economies.
Kimani said the government expects the law to open doors for more investment in Kenya’s financial technology sector, including from major crypto firms such as Binance and Coinbase, which have previously engaged in discussions with Kenyan authorities.
The digital assets industry has experienced rapid growth globally over the past decade, but governments continue to grapple with the challenge of preventing financial crimes enabled by the anonymity of blockchain systems.