Share this article
Kenya Prepares to Legalize Cryptocurrencies in Policy Shift: Report
Kenya's move represents a significant policy shift from their previous warnings about the crypto industry.
Updated Jan 10, 2025, 6:03 p.m. Published Jan 10, 2025, 5:53 p.m.
What to know:
- Kenya is preparing legislation to legalize cryptocurrencies.
- Their goal is to capitalize on the potential benefits associated with the industry while mitigating fraud, money laundering, and terrorism financing risks.
Kenya’s Treasury Cabinet Secretary John Mbadi has said the country is preparing legislation to legalize cryptocurrencies, a shift from the government’s previous warnings against the industry.
"The emergence and growth of Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs) have given rise to innovations in the local and international financial system with dynamic opportunities and challenges," Mbadi said according to local news outlet The Standard.
STORY CONTINUES BELOW
Mbadi stressed a need for a regulatory framework to both capitalize on the potential benefits of the industry while mitigating the risks posed by money laundering, terrorism financing and fraud.
“The Government of Kenya is committed to creating the necessary legal and regulatory framework in order to leverage opportunities presented by VAs and VASPs while managing the reluctant risks,” Mbadi said.
Kenya launched a draft policy on virtual assets and virtual asset service providers in December. The draft policy aims to establish a “fair, competitive and stable market” for cryptocurrency industry players and foster innovation and financial literacy, Mbadi said.
Kenya has historically kept a cautious stance toward the cryptocurrency industry. In December 2015 the country’s central bank issued a public notice warning against cryptocurrency use, stating that these assets weren’t legal tender in the country and no entity was licensed to offer money remittance services using crypto in Kenya.
Fast forward to 2022 and lawmakers in the country started weighing on whether to move ahead with a law to tax crypto as the industry kept on growing in the country. A United Nations report at the time showed roughly 8.5% of Kenyans owned cryptocurrencies.
CoinDesk did not hear back from Kenya's Treasury before press time.
More For You
L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below.
What to know:
2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.
This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.
More For You
Russia’s central bank unveils new crypto rules to be adopted in 2026
Bank of Russia outlined a new framework intended to let retail and qualified investors buy crypto under defined tests and caps by 2027.
What to know:
- Russia's central bank has proposed a framework to legalize and regulate cryptocurrency trading for individuals and institutions.
- The proposal allows ordinary citizens to buy and sell cryptocurrencies through regulated platforms, with limits for nonqualified investors.
- The framework supports broader use of Russian-issued digital financial assets and permits crypto purchases abroad with mandatory tax reporting.
Top Stories
