Kenyan crypto leaders call for balanced rules ahead of 2025

At a Bitcoin conference in Nairobi, Trevor Kimani, chief executive of AlphabloQ, urged Kenyan regulators to balance consumer protection with room for innovation as the country finalizes a 2025 virtual-asset regulatory framework. He called for closer public-private cooperation during the drafting process.

Kenya moved from informal guidance to formal oversight after passage of the Virtual Asset Service Providers Act in 2025. The Central Bank of Kenya and the Capital Markets Authority are drafting licensing and compliance standards. The National Treasury collected public comments through April 2026 to inform licensing and tax-reporting rules for crypto firms.

The emerging framework includes requirements for crypto platforms to segregate client funds, hold insurance coverage and maintain local bank accounts that enable state oversight. Regulators are also developing licensing criteria for virtual asset service providers and new tax-reporting obligations.

Industry speakers at the conference urged regulators to engage with technologists and exchanges to understand how Bitcoin works in practice. Robert Kirubi, chairman of Talo Africa, argued: “Regulation is fine, but governments also need to understand what Bitcoin is and what it can do.”

Participants described the state as a partner in preventing fraud and protecting financial stability, while warning that overly strict rules could push activity into unregulated channels or drive talent abroad. Kimani told attendees that firms are taking part in consultations to help shape workable supervision and to raise public awareness about the risks and benefits of digital assets. He added: “It is our responsibility to help policymakers understand the opportunities and risks so that regulations do not hinder innovation.”

Founders and executives raised practical compliance concerns, including the cost of maintaining segregated accounts and insurance and the operational challenges of meeting local-banking requirements for global platforms. They called for phased implementation and clear licensing timelines to allow firms to adapt without disrupting customer services.

Officials at the Central Bank of Kenya and the Capital Markets Authority have not published final rules. The Treasury’s review, which gathered inputs through April 2026 from exchanges, fintech startups, consumer groups and banks, aims to finalize guidance on licensing thresholds, capital requirements and tax-reporting standards.

Supporters of tighter oversight contend the rules will reduce fraud and improve recourse when platforms fail. Some industry leaders noted that clear, predictable rules could attract investment and talent and support Kenya’s role in regional digital-asset activity.

Sandra Kimberly, co-founder of Bitika, noted that firms are participating in public consultations and investor education efforts to help policymakers and the public understand digital-asset risks and safeguards.