Kenya’s VASP Act Put to Early Test as Unlicensed Bitcoin ATMs Hit Shopping Malls

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Kenyan regulators have issued caution as cash-to-crypto kiosks have appeared in shopping centers in the country’s capital of Nairobi. None of the providers behind these kiosks have yet been legally authorized to operate under the country’s new crypto framework. 

Kenya’s Virtual Assets Service Providers Act (VASP Act) came into force on November 4, 2025, establishing the licensing requirements for custodial wallets, exchanges, and other virtual asset platforms to operate in the country. Bitcoin ATM operators seem to have been keen to enter the Kenyan market in response. 

However, the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) released a joint statement stressing that no VASPs have been authorized, saying: 

Currently, CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya.

Despite being unregulated, the rapid appearance of cryptocurrency ATMs in upscale retail locations indicates more mainstream virtual asset use in Kenya, with 10% of the country estimated to use crypto. 
Cryptocurrencies are also known to have been used in lower-income parts of Nairobi as an alternative means of banking for those with limited access to traditional financial services.