An explainer on the Virtual Asset Service Providers Act has been published by Virtual Assets Chamber in collaboration with Vellum

The move, is being hailed as a milestone for the country’s Silicon Savannah and a reference point for other African regulators grappling with crypto policy.

The video, walks viewers through the act’s core provisions – from the definition of virtual assets and custodial responsibilities to licensing requirements for exchanges, wallet providers and custodians. It also highlights mandatory anti‑money‑laundering (AML) and know‑your‑customer (KYC) procedures, reporting obligations and the role of the Central Bank of Kenya in supervising the sector.

Kenya’s decision to codify virtual‑asset activities comes after a period of rapid growth in local crypto trading platforms and a surge of interest from fintech startups operating out of Nairobi. By establishing a clear regulatory framework, the government hopes to attract legitimate investment while curbing illicit use. Industry observers see the explainer as more than a public‑relations piece; it provides a practical roadmap for companies that have been waiting for clarity.

Kenyan officials have welcomed the initiative, noting that the VASP Act is part of a wider fintech agenda that includes digital identity, payments interoperability and the development of a national digital currency. If the framework proves effective, it could spur a wave of fintech startups to set up shop in Nairobi, reinforcing the city’s reputation as Africa’s emerging tech hub.

The explainer video is available on YouTube here.