Kenya’s newly introduced Virtual Assets Service Providers Act of 2025 is under early pressure after Bitcoin ATMs suddenly appeared in several major shopping malls across Nairobi. The Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) have warned that no crypto firm is currently licensed to operate under the updated regime, raising concerns about compliance and enforcement.
Bitcoin ATMs Enter Mainstream Spaces
Local outlet Capital News reported that machines branded “Bankless Bitcoin” were installed beside traditional banking kiosks in high footfall malls. These ATMs offer cash to crypto conversions for shoppers. Kenya has seen similar machines in the past. In 2018, BitClub placed Bitcoin ATMs in Nairobi, although the devices failed to gain widespread use and never reached large retail centres.
A Bitcoin ATM spotted in Kenya. Source: Capital FM
According to CoinATMradar, Kenya currently has only two officially reported Bitcoin ATMs. The new installations suggest rapid expansion, even as the legal environment remains unsettled.
New Law Takes Effect while Licensing Awaits Regulations
The VASP Act came into effect on November 4, creating Kenya’s first comprehensive licensing system for wallet providers, custodians, exchanges and other crypto businesses. Under the framework, the CBK will oversee custody and payment operations. The CMA will supervise investment and trading activity.
However, the Act requires detailed regulations before the licensing process can begin. These regulations have not yet been released. As a result, no operator is legally registered or approved to run crypto services within Kenya.
The CBK and the CMA issued a joint public notice stating that any company claiming approval under the Act is doing so unlawfully. The central bank added that the National Treasury is developing regulations that will determine when licensing procedures can start.
This mismatch has drawn attention, as visible crypto infrastructure is entering mainstream public spaces while regulators insist that no operator is officially sanctioned.
Informal Crypto Activity Expands Beyond Backstreets
The spread of Bitcoin ATMs into premium malls indicates Kenya’s fast-growing informal crypto ecosystem. For years, Bitcoin adoption has been strongest in low income areas. Capital News noted that communities in Kibera have used Bitcoin as a practical alternative to traditional banking.
Source: Central Bank of Kenya
Ronnie Mdawida, co founder of AfriBit Africa, explained that many residents in informal settlements cannot open bank accounts or accumulate savings due to a lack of documentation. He said Bitcoin allows them to hold value securely, which he described as a form of financial freedom for people living on extremely limited incomes.
Balancing Growth with Oversight
Kenya is recognised as one of Africa’s most active crypto markets. The sudden appearance of new ATMs has renewed debate about the country’s approach to digital assets. Supporters see rising adoption as evidence of demand for accessible financial tools. Regulators emphasise the need for clear oversight in order to safeguard consumers.
Until licensing opens, Kenya faces a delicate period. Crypto infrastructure is becoming more visible while operators remain unregulated. The coming months will determine how strictly authorities enforce compliance and how the National Treasury shapes the next stage of Kenya’s digital asset rules.
