Cryptocurrency industry leaders urged deeper collaboration with Kenyan government agencies at a Bitcoin conference in Nairobi as the country advances its first comprehensive digital-asset regulatory framework following passage of the Virtual Asset Service Providers Bill in 2025. Technology executives and blockchain advocates said sustained engagement with policymakers is essential to crafting rules that protect consumers without stifling market innovation. Kenya is transitioning from years of informal guidance to formal oversight, with the Central Bank of Kenya and the Capital Markets Authority currently designing licensing and compliance standards for the sector.
Industry Calls for Policy Collaboration at Nairobi Conference
Speaking at the conference, Robert Kirubi, chairman of Talo Africa, said "Regulation is fine, but governments also need to understand what Bitcoin is and what it can do," arguing that policy must be grounded in a clear technical understanding of digital assets. Trevor Kimani, chief executive of AlphabloQ, added "It is our responsibility to help policymakers understand the opportunities and risks so that regulations do not hinder innovation."
Industry participants described the government as a necessary partner in curbing fraud and safeguarding financial stability. Still, they warned that overly restrictive rules could push economic activity underground or drive talent abroad. Sandra Kimberly, co-founder of Bitika, said crypto firms are actively participating in public consultations to support policymaker education and improve public awareness as Kenya shapes its supervisory approach.
Conference speakers said stronger public-private alignment could position Kenya as a leading East African hub for digital assets, enabling innovation to grow alongside clear protections for everyday users.
Regulatory Requirements Take Shape Under VASP Framework
Kenya's emerging legislative framework imposes strict consumer protections, requiring crypto platforms to segregate client funds, secure insurance coverage, and maintain local bank accounts to allow for state oversight. The Central Bank of Kenya and the Capital Markets Authority are currently designing licensing and compliance standards for the sector.
By April 2026, the National Treasury had gathered public inputs to finalize new licensing and tax reporting standards. The enactment of the VASP Act in 2025 shifted Kenya from informal crypto oversight to strict consumer protection laws.
FAQ
What did Kenya's Parliament do regarding cryptocurrency regulation in 2025?
Kenya's Parliament passed the Virtual Asset Service Providers Bill in 2025, shifting the country from informal crypto oversight to formal regulation with strict consumer protection laws.
What requirements does Kenya's crypto framework impose on platforms?
Kenya's emerging legislative framework requires crypto platforms to segregate client funds, secure insurance coverage, and maintain local bank accounts to allow for state oversight. The Central Bank of Kenya and the Capital Markets Authority are designing licensing and compliance standards.
