Kenya is introducing a series of regulations that mandate cryptocurrency firms operating within its borders to establish local offices as part of the government’s efforts to regulate cryptocurrency trading.
The National Treasury has published the Virtual Asset Service Providers Bill, 2025, which stipulates: “A virtual asset service provider shall maintain a registered office in Kenya.”
The government aims to license cryptocurrency trading and requires companies such as Binance and Coinbase to appoint chief executive officers or directors who must receive approval from a regulatory authority, such as the Capital Markets Authority (CMA).
According to the proposed legislation, the government will assess the qualifications of these company leaders to ensure they possess the necessary educational and professional credentials and have not engaged in any acts of dishonesty, fraud, or violations of laws related to virtual assets.
Moreover, cryptocurrency firms will be required to operate under a board consisting of at least two directors.
“The board of directors of a licensee shall comprise of natural persons only, and a director shall not serve on more than one board,” the draft law specifies.
Cryptocurrency refers to a form of digital currency that is secured through cryptography and operates on decentralized networks utilizing blockchain technology.
This structure makes it difficult to counterfeit or double-spend the currency. Bitcoin, introduced in 2009, is recognized as the first and largest cryptocurrency.
Cryptocurrencies are not issued by any central authority, thus remaining insulated from governmental interference or manipulation.
They are primarily used for preserving savings, facilitating international transactions, and making remittances.
In contrast to banks and credit card companies that verify transactions, cryptocurrencies offer a more straightforward method for transferring funds directly between two parties on a global scale.
Additionally, users are not required to convert their money into euros or dollars or incur fees associated with cross-border money transfer services like Western Union.
Many cryptocurrency companies do not have offices in the countries where they operate, and some of the leading firms lack physical headquarters altogether.
