Kenya Approves Virtual Asset Service Providers Act, Lets Central Bank License Stablecoins

Kenya’s Parliament has enacted the Virtual Asset Service Providers Act, creating a statutory framework to standardize digital asset transactions and attract investment, Reuters reports. The law empowers the central bank to license issuance of stablecoins and other tokenized assets, while designating the capital markets regulator to license crypto exchanges and platforms. Authorities present the measure as a tool to enhance regulatory clarity for institutional and retail participants and to position Kenya as an African crypto finance hub. The government has indicated it aims to draw international platforms such as Binance and Coinbase under the new licensing regime; implementation timelines and licensing criteria will determine the Act’s near-term market impact.