Kenya’s New Crypto Law Faces Stress Test as Bitcoin ATMs Appear in Malls

Why It Matters

The clash between burgeoning crypto retail infrastructure and the absence of licensed operators underscores enforcement challenges for Kenya’s nascent crypto regime, potentially shaping the country’s financial inclusion trajectory and influencing investor confidence in the region’s digital asset market.

Summary

Kenya’s Virtual Assets Service Providers (VASP) Act, which took effect on Nov. 4, 2025, has sparked a regulatory showdown as Bitcoin ATMs branded “Bankless Bitcoin” appeared in several major Nairobi malls. The Central Bank of Kenya and the Capital Markets Authority jointly warned that no VASP has been licensed under the new framework, meaning the ATMs are operating illegally. While the new machines signal a move of crypto services from informal neighborhoods like Kibera into upscale retail spaces, the required licensing regulations have yet to be issued, creating a compliance gap. CoinATMradar reports only two Bitcoin ATMs previously existed in Kenya, highlighting the rapid expansion of crypto infrastructure despite regulatory uncertainty.