The Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) of Kenya have issued a joint statement anouncing the active commencement of the Virtual Asset Service Providers (VASPs) Act.

The two regulators, who were granted the legal authority and power to regulate and supervise VASPs and related activities, also highlighted that ‘the Act outlines obligations of VASPs in the prevention of Money Laundering, Terrorism Financing, and Proliferation Financing.’

 

The public notice reads:

The Act designates the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as the regulators responsible for licensing, supervising, and regulating VASPs in Kenya. The Act provides for CBK and CMA to license VASPs in accordance with the services listed in the First Schedule to the Act.

According, 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.

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 comes one week after Kenya’s financial regulators, which included CBK and CMA Kenya, met for the 16th Annual Board Retreat of the Joint Financial Sector Regulators Forum under the theme “Fostering Financial Stability and Resilience Amid Emerging Risks and Regulatory Reforms.”

REGULATION | Kenya’s Financial Regulators Call for Stronger Consumer Protection as #VASPKE Act Ushers in New Era of Digital Finance Oversight

The Forum identified reliance on third-party technology providers as a key area of vulnerability.https://t.co/adcvoCqGtK #CryptoKE pic.twitter.com/8eXCBSerLw

— BitKE (@BitcoinKE) November 10, 2025

The Forum identified reliance on third-party technology providers as a key area of vulnerability, particularly where multiple institutions depend on a single vendor. Such concentration risk, they cautioned, could threaten service delivery in case of provider failure.

The Forum also highlighted the need to strengthen consumer and systemic safeguards in light of the VASP Act.

It is also noteworthy that this public statement specifically mentions the ‘prevention of money laundering, terrorism financing, and proliferation financing.’

As reported recently by BitKE, several high-level cases of money laundering and terrorism financing have been reported in Kenya that involve the use of virtual assets and VASP platforms to undertake this criminal activity.

Some of these include:

  • Operation Serengeti 2.0 lead by INTERPOL

[TECH] REGULATION | Interpol’s Operation Serengeti 2.0 Nubs Millions in Crypto Scams Across Multiple African Countries: In a sweeping INTERPOL-coordinated operation, authorities across Africa have arrested.. https://t.co/iRpKVN5M45 via @BitcoinKE

— Top Kenyan Blogs (@Blogs_Kenya) August 24, 2025

  • Operation Catalyst which was led by INTERPOL and AFRIPOL

REGULATION | @binance Helped Identify Over 160 Persons of Interest During ‘Operation Catalyst’ by INTERPOL, Says Head of Compliance, @BinanceAfrica Africa

Operation Catalyst was a landmark public-private initiative led by @INTERPOL_HQ and #AFRIPOLhttps://t.co/pOAJrDwRUs pic.twitter.com/PBw9eTncbc

— BitKE (@BitcoinKE) October 28, 2025

  • Anti-Terrorism Police Unit (ATPU) operation in Kenya

CRYPTO CRIME | Prominent #Kenyan Lawyer Reportedly Arrested Over Terrrorism Financing with Significant Funds Involving Cryptocurrencies

Key evidence cited by investigators are crypto transfers, wired bank payments, travel manifests, hotel reservationshttps://t.co/wf7gPHz84o pic.twitter.com/6WUeOaVNBY

— BitKE (@BitcoinKE) November 17, 2025

Law enforcement in Kenya has also demonstrated its zeal in cracking down on cross-border digital crime, including via cryptocurrencies, by undertaking trainings in collaboration with other regional law enforcement bodies supported by Western experts and companies.

[TECH] CRYPTO CRIME | Kenyan Investigative Body, DCI Kenya, Applauds Regional Collaborative Efforts Towards Fighting Cross-border Digital Crime: The Director of Criminal Investigations in Kenya (DCI Kenya), .. https://t.co/Y0QA9Y3p9v via @BitcoinKE

— Top Kenyan Blogs (@Blogs_Kenya) November 16, 2025

This recent public notice thus sends a warning that the VASP Act now gives more authority and empowers regulators to undertake enforcement measures against individuals as well as service providers or VASPs that facilitate illegal virtual asset activities.

Kenyan investigators on high alert amidst escalating crypto crime!

With rising crypto scams, the @DCI_Kenya together with @EACCKenya, are stepping up.

Here’s why it matters: https://t.co/AHJRhrKbND @CMAKenya @CBKKenya #CryptoCrime #Kenya #CryptoRegulation pic.twitter.com/2WHmTE9z5v

— BitKE (@BitcoinKE) June 16, 2025

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