Govt Explains Why No Virtual Asset Firms Have Been Licensed Yet

The government has clarified why the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) have not licensed any Virtual Asset Service Providers (VASPs) under the new Virtual Assets Service Providers Act, 2025.

The law, which was gazetted on October 21 and came into force on November 4, 2025, establishes a regulatory framework for virtual asset companies.

It also sets out rules meant to prevent money laundering, terrorism financing and proliferation financing.

The Act gives CBK and CMA the mandate to license, supervise and regulate VASPs operating in Kenya.

In a public notice issued on Tuesday, November 18, CBK said the Act allows the two regulators to license VASPs based on the services listed in its First Schedule. However, the licensing process cannot begin yet.

According to CBK, the Cabinet Secretary for the National Treasury is currently preparing regulations to guide the implementation of the Act, following advice from both CBK and CMA.

“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,” the notice reads.

CBK added that licensing will only begin once these regulations are issued.

“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,” the notice states.