OPINION: Building a fair crypto future for Kenya

Kenya has long been a trailblazer in financial innovation. From pioneering mobile money with M-Pesa to cultivating a dynamic fintech ecosystem, the country has consistently demonstrated that it can embrace technology to empower its citizens and drive economic growth. 

Today, Kenya faces another defining moment: the introduction of the Virtual Asset Service Providers (VASP) Bill, 2025.

This legislation promises to provide much-needed clarity for a rapidly growing digital asset sector. 

For years, Kenya’s crypto ecosystem has operated in a legal grey zone. Youth-led startups have built on decentralised finance (DeFi) platforms, traders have engaged in peer-to-peer markets, and global players have quietly onboarded Kenyan users — all without formal oversight. 

While this ingenuity has created vibrant communities and economic opportunities, it has also left users exposed to risks, from fraud to regulatory uncertainty.

The VASP Bill represents an opportunity to change this. 

By establishing clear licensing requirements, compliance standards, and oversight mechanisms, the legislation can protect consumers, legitimize local startups, and foster a collaborative environment for innovation. 

Banks, payment service providers, and institutional investors, previously hesitant to engage due to legal ambiguity, can now+ participate with confidence.

At Binance, we see regulation and innovation not as opposites, but as partners. Thoughtful rules build trust and enable sustainable growth. That is why we have actively engaged with Kenyan regulators throughout the consultative process, sharing insights from our operations in over 100 markets worldwide. 

Our aim has been simple: ensure the bill strikes a balance between safeguarding users and empowering innovators.

The potential benefits are significant. Millions of Kenyans rely on digital assets to send and receive money, access financial services, and invest in opportunities that traditional systems cannot provide.

Remittances worth billions flow into the country each year, much of it eroded by high fees. A regulated crypto environment can reduce those costs, allowing more money to reach households and small businesses. 

Farmers, freelancers, and informal traders could access innovative lending and savings models powered by tokenized solutions.

Moreover, the bill can help Kenya’s startups gain access to critical banking infrastructure and international investment. 

Small teams with bold ideas but limited resources can finally operate within a legal framework, attracting capital and partnerships that were previously out of reach.

This opens pathways to job creation, economic inclusion, and technological leadership.

Critically, the VASP Bill must also account for decentralised platforms, cross-border transactions, and privacy concerns. Overly rigid compliance rules could stifle innovation or favour larger players with more resources. 

By engaging early with regulators, Binance has advocated for technically informed approaches that allow both consumers and innovators to benefit.

The passage of this legislation signals Kenya’s intent to embrace digital finance responsibly and inclusively. It is an opportunity to demonstrate that innovation and oversight can coexist. 

At Binance, we are proud to contribute to this journey, helping shape a framework that positions Kenya as a continental leader in blockchain, digital assets, and financial inclusion.

With balanced regulation, Kenya can protect consumers, empower entrepreneurs, and lay the foundation for a thriving digital economy. 

The VASP Bill is more than legislation — it is a statement of ambition and vision. Together, regulators, innovators, and users can ensure that Kenya’s crypto future is safe, fair, and prosperous for all.

The writer, Larry Cooke, is Binance Africa’s head of legal counsel