Kenya moves to regulate crypto as trading surges past $500 million a month
Kenya is preparing to introduce new rules to manage digital assets like Bitcoin and stablecoins as it positions itself to lead Africa’s fast-growing digital economy.
The Ministry of Information, Communications and the Digital Economy says it is working on two key frameworks, a National Policy on Virtual Assets and a bill to guide Virtual Asset Service Providers (VASPs).
These steps are meant to support innovation while protecting users and keeping financial systems safe.
Cabinet Secretary Eliud Owalo said the country’s approach is shifting.
“We’re pivoting from apprehension to leadership,” he posted on X, formerly Twitter, calling digital assets “the future of finance.”
Kenya’s decision marks a big change from its previous cautious stance.
Until recently, most financial regulators in the country had warned citizens against cryptocurrencies, calling them risky and unregulated.
However, that tone is changing, driven by rising use of blockchain technology and crypto trading at the grassroots level.
The government says more than $500 million is now traded every month in Kenya through digital platforms, showing how mainstream these technologies have become despite the lack of clear laws.
The move also follows the launch of the Kenya Digital Token (KDT), a civic-led token built on the Solana blockchain.
Although not issued by the government, the token has gained attention and was welcomed by the ministry earlier this month. Officials say it reflects the kind of innovation they want to see.
The government says blockchain and crypto tools could open global markets to young Kenyans, giving people in rural areas a way to raise money, invest or access services without traditional banks.
The timeline for passing the bill and implementing the new rules has not yet been made public.
Kenya’s push comes as other African nations also explore digital finance.
Nigeria has already launched a central bank digital currency, while countries like South Africa and Ghana are testing blockchain projects.
This story is written and edited by the Global South World team, you can contact us here.
