Kenya Empowers Capital Markets Authority to Oversee Crypto Firms

Kenya has taken significant steps to regulate its cryptocurrency industry by designating the Capital Markets Authority (CMA) as the overseer of virtual asset exchanges, brokers, and investment firms. This move is part of a broader effort to strengthen investor protection while complying with global anti-money laundering standards.

The new law, known as the Virtual Assets Service Providers (VASP) Act, 2025, establishes a legal framework for licensing and regulating virtual assets service providers in Kenya. The CMA's Annual Supervision Report 2025 highlights that the VASP Act designates the CMA as the regulator of various virtual asset businesses, ending years of uncertainty.

The reforms align with global standards and position Kenya among jurisdictions introducing dedicated oversight for digital assets. The legislation also represents a significant expansion of the CMA's regulatory mandate, bringing the country's cryptocurrency ecosystem under the same supervisory framework that governs Kenya's capital markets.