Kenya’s New Crypto Law Faces Immediate Test as Bitcoin ATMs Appear in Nairobi Malls
Unlicensed Bitcoin ATMs in Nairobi malls are testing Kenya's new Virtual Assets Service Providers Act, which lacks an operational licensing system.Summary
Kenya's new Virtual Assets Service Providers Act, enacted on November 4, 2025, establishes a formal regulatory framework overseen by the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA). However, the licensing system is not yet operational, creating a regulatory gap. This gap is immediately highlighted by the appearance of 'Bankless Bitcoin' ATMs in high-traffic Nairobi malls, which allow cash-for-Bitcoin transactions.
Regulators quickly warned that no Virtual Asset Service Providers (VASPs) have been licensed, deeming any current operation illegal. This situation contrasts with grassroots crypto adoption, where communities like Kibera have used Bitcoin since 2022 as an alternative to mobile money systems like M-PESA. Kenya is a regional crypto leader, ranking highly in P2P transactions, and the new law aims to formalize this sector while protecting consumers.
The immediate challenge is enforcement, as companies operating without licenses face severe fines. The National Treasury is still developing the detailed regulations required to begin licensing, leaving crypto businesses and users in a temporary regulatory gray area as the country navigates its transition to formal digital finance.
(Source：Brave New Coin)