Kenya Regulates Cryptocurrency Gambling Through Virtual Asset Legislation
Kenya’s Parliament passed the Virtual Asset Service Providers Bill 2025 on October 13, with President William Ruto signing the legislation into law on October 15. Meanwhile, the bill regulates digital assets including cryptocurrencies and stablecoins alongside the companies managing them.
Dual Regulatory Structure Oversees Digital Assets
The Central Bank of Kenya will oversee licensing for stablecoins and other virtual assets under the new framework. Meanwhile, the Capital Markets Authority will regulate cryptocurrency exchanges and trading platforms. Therefore, the dual-regulator model aligns with international best practices for digital asset oversight. Moreover, the structure promotes innovation while reducing money laundering and fraud risks across financial services.
Gambling operators face stricter Know Your Customer procedures and enhanced anti-money laundering checks on cryptocurrency deposits and withdrawals. Subsequently, the Central Bank views the legislation as reinforcing monetary and financial stability for emerging asset classes. Consequently, regulators intend to phase out unregulated offshore crypto channels previously used to bypass traditional banking oversight. Therefore, operators must adapt to heightened compliance requirements.
Compliance Costs Balanced Against Market Legitimacy
Operators may experience increased compliance costs under the new regulatory framework. However, the legislation provides legitimacy in a market prioritizing transparency and responsible gaming practices. Moreover, the framework opens opportunities for operators to function in a fully regulated and transparent market environment. Therefore, the regulatory clarity should boost investor confidence and support long-term industry growth.
The legislation does not specifically target gambling companies but significantly affects their operational models. Meanwhile, detailed implementing regulations from the Central Bank and Capital Markets Authority remain forthcoming. Consequently, Kenya’s online gambling sector faces a pivotal transition toward regulated digital asset integration. Therefore, lawmakers signal support for digital innovation under strict transparency and accountability requirements.
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