Kenya passes Virtual Asset Service Providers Bill…aims to become an African financial hub

Kenya's parliament has passed a bill to incorporate virtual assets (cryptocurrencies) and other digital assets into the formal regulatory framework. It is seen as a measure to establish a clear regulatory regime and encourage investment inflows. As a result, Kenya is expected to become the second country, after South Africa, to introduce regulations related to virtual assets.

On the 13th (local time), Reuters reported that Kuria Kimani, chair of the Kenyan parliament's finance committee, said last week that the parliament passed the 'Virtual Asset Service Providers Bill'. He said, "(Currently the bill) only requires the president's signature," and "this bill will resolve uncertainty in the digital asset industry through a clear regulatory foundation and induce expanded investment."

The bill designates the central bank as the licensing authority for the issuance of stablecoins and other virtual assets, and grants the Capital Markets Authority (CMA) the authority to license platform operators such as exchanges.

The government described the measure as a preemptive response to the spread of U.S. dollar-linked stablecoins (virtual assets whose value is pegged to fiat currency).

Kimani said, "Major global exchanges such as Binance and Coinbase have held investment talks with the Kenyan government," and "we expect the law to make Kenya a gateway for entering African markets." He added, "Young people aged 18~35 are already using virtual assets for payments, investments, and business," and "this bill will institutionally support the economic participation of the younger generation."