Kenya’s new crypto law faces stress test as Bitcoin ATMs appear in malls

Overview

Kenyan regulators have issued a warning regarding the legality of crypto firms operating in the country under the new Virtual Asset Service Provider (VASP) Act. They have stated that no crypto firms have been licensed under this act, and any providers claiming to have approval are doing so illegally. This situation has become more pronounced with the emergence of Bitcoin ATMs in malls across Kenya.

What Happened

Recently, Bitcoin ATMs have started appearing in various malls in Kenya. This development raises concerns given the regulatory environment surrounding cryptocurrencies in the country. The VASP Act was introduced to govern the operation of crypto firms, but regulators have clarified that no entities have received licenses under this legislation. As a result, any claims of approval by crypto providers are deemed unlawful.

The appearance of Bitcoin ATMs in public spaces like malls adds complexity to the regulatory landscape. It highlights a potential disconnect between the proliferation of cryptocurrency services and the existing legal framework, which is currently not recognizing any licensed operators.

Impact on the crypto market

• The announcement reinforces the importance of regulatory compliance for crypto firms in Kenya.
• The proliferation of unlicensed crypto services could lead to increased scrutiny from regulators.
• The presence of Bitcoin ATMs may attract interest from consumers, despite the lack of legal backing.
• Stakeholders in the crypto sector may need to reassess their operations and strategies in light of regulatory clarifications.
• The situation could influence future legislation and regulatory approaches to cryptocurrencies in Kenya.

Updated: 11/19/2025, 1:36:28 PM