Kenya moves to regulate digital assets with new crypto bill
- Kenya proposes the Virtual Assets Service Providers (VASP) Bill to regulate the cryptocurrency sector.
- The bill requires all virtual asset providers to be licensed by designated regulators.
- It enforces compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) standards.
The introduction of the VASP Bill is a significant and necessary step for Kenya to regulate the cryptocurrency sector, providing a structured framework that can enhance consumer protection and financial stability. However, it will be crucial for regulators to balance oversight with the need to foster innovation, ensuring that the regulatory environment does not stifle the growth of fintech startups.
