Kenya’s new Crypto Law strengthens control over online gambling
The Virtual Asset Service Providers Bill, 2025, introduces regulation for digital assets, closing offshore loopholes and setting a clear path for licensed operators to thrive in a transparent market.
Kenya.- Kenya’s online gambling industry is undergoing a major transformation following Parliament’s passage of the Virtual Asset Service Providers Bill, 2025, on October 13, and its signing into law by President William Ruto on October 15.
The legislation regulates digital assets such as cryptocurrencies and stablecoins, as well as the companies that handle them, bringing long-awaited clarity and oversight to Kenya’s fast-growing betting sector.
Though the bill targets digital assets broadly, its impact on Kenya’s online gambling sector is already clear. Many operators previously relied on offshore crypto wallets and unregulated payment channels to run their businesses, leaving players exposed to risk and the industry in a legal grey area. The new law aims to increase transparency, strengthen consumer protection and give legitimate operators a clear path to grow safely in Kenya.
Under the new framework, the Central Bank of Kenya (CBK) will oversee the licensing of stablecoins and other virtual assets, while the Capital Markets Authority (CMA) will regulate crypto exchanges and trading platforms. This dual-regulator model aligns with international best practices, promoting innovation while reducing money laundering and fraud risks.
Finance Committee Chair Kuria Kimani expressed optimism about the new legislation, saying: “We are hoping that Kenya can now be the gateway into Africa,” according to Reuters. His remarks highlight the government’s ambition to position Kenya as a hub for digital finance where innovation and regulation coexist.
The CMA’s acting CEO Wyckliffe Shamiah welcomed the reform. He said, according to Business Daily Africa: “By licensing and supervising virtual-asset platforms, we will be able to safeguard investors, promote transparency and curb money laundering risks.”
For betting operators, this translates into stricter Know Your Customer (KYC) procedures and tighter anti-money laundering checks on crypto deposits and withdrawals.
Gambling sector faces new Crypto rules
According to industry analysis by BloomingBit.io, the CBK supports the enactment of the bill, viewing it as a step toward reinforcing monetary and financial stability in an emerging asset class. Analysts interpret this as a signal that the CBK intends to phase out unregulated offshore crypto channels previously used by some operators to bypass traditional banking oversight.
While the bill does not specifically target gambling companies, its effects are already visible. Operators may face higher compliance costs but are also set to gain legitimacy in a market that increasingly values transparency, responsible gaming and consumer protection. The legislation also opens the door for operators to thrive in a fully regulated, transparent market, boosting confidence and long-term growth.
With detailed regulations from the CBK and CMA on the horizon, Kenya’s online gambling sector faces a pivotal moment. Lawmakers are signalling that digital innovation will be welcomed, but only under strict rules that ensure transparency, accountability and financial integrity.
