Kenya’s New Crypto Law Marks a Turning Point for Online Betting
Kenya has taken a major step in formalizing its digital economy with the enactment of the Virtual Asset Service Providers Act, 2025. The law, passed by Parliament on October 13 and signed by President William Ruto two days later, establishes a clear regulatory framework for virtual assets and digital-finance operations in the country.
The new legislation replaces years of uncertainty surrounding the use of cryptocurrencies, which had been growing rapidly in Kenya but without a defined legal structure. Its introduction provides long-awaited clarity for industries such as online betting, fintech, and digital payments, where operators have often depended on offshore or unregulated crypto channels to process transactions.
The law creates a system of dual oversight for digital assets, assigning responsibility to both the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA).
Under the new arrangement, the CBK will oversee the issuance and regulation of stablecoins and other virtual assets that have implications for monetary policy, while the CMA will supervise trading platforms, exchanges, and brokers involved in crypto-asset transactions.
This model mirrors emerging international practices designed to balance innovation with accountability. By clarifying roles and responsibilities, Kenya aims to create a safer and more transparent environment for virtual-asset businesses and their users.
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Among the sectors most directly affected by the new law is online gambling, which has seen widespread adoption of digital currencies for deposits and payouts. Licensed betting operators are now required to meet enhanced Know Your Customer (KYC) and anti-money-laundering (AML) obligations for all crypto-based transactions. These measures are expected to raise compliance costs but will also strengthen player protection, reduce exposure to fraud, and bring greater legitimacy to the sector.
The reforms also close a long-standing regulatory gap that allowed some companies to bypass banking oversight through offshore wallets, thereby improving financial transparency in the gaming value chain. Kenya’s approach signals a shift from informal digital practices to a formalized, transparent financial ecosystem. For regulators, the law supports the goals of consumer protection and financial stability, while for businesses it introduces clearer rules for innovation and investment.
Market analysts expect that licensed operators, payment processors, and fintech startups will increasingly collaborate within this regulated framework. This could help position Kenya as one of Africa’s most advanced markets for digital finance and blockchain-based services.
While the Act sets high standards for compliance, it also opens new opportunities. The licensing of virtual-asset providers allows legitimate businesses to operate with legal certainty, encouraging cross-border investment and partnerships.
