<b>Kenya Moves to Regulate Virtual Assets Sector</b>

The Kenyan government has taken a significant step towards regulating the rapidly growing virtual assets sector. The draft regulations, developed by the Capital Markets Authority (CMA), are designed to operationalize the Virtual Asset Service Providers Act.

Briefing stakeholders on the proposed rules, CMA Manager for Capital Markets Jairas Muaka noted that the legislation aims to provide a legal framework for the digital assets industry. He emphasized that virtual assets, commonly known as cryptocurrencies, have become widely used in Kenya but most service providers operate outside a regulated environment.

According to Muaka, this creates exposure for consumers, particularly young people who are often targeted by fraudulent schemes in the crypto space due to the lack of oversight. Under the proposed framework, all VASPs will be required to obtain licenses and comply with strict operational standards.