Kenya Bitcoin ATMs Debut as New Crypto Law Begins
Background: New Cryptocurrency Law and ATM Launch
Kenya Bitcoin ATMs have been installed in leading shopping malls across Nairobi, according to local media reports, just days after the country implemented its first comprehensive cryptocurrency law. The appearance of these “Bankless Bitcoin”-branded machines, positioned beside traditional banking kiosks, follows the activation of the Virtual Assets Service Providers Act of 2025 on November 4. This law introduces Kenya’s first formal licensing and oversight framework for cryptocurrency wallet operators, exchanges, custodians, and other platforms.
While this is not the first presence of Bitcoin ATMs in Nairobi—BitClub briefly operated similar devices in 2018, as reported by The East African—previous adoption was minimal and limited to a handful of locations, with CoinATMradar data now listing only two Bitcoin ATMs currently operational in the country.
Regulatory Response and Current Status
The timing of the Kenya Bitcoin ATMs’ arrival has prompted an immediate regulatory challenge. Both the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) jointly stated that no provider is presently licensed to operate under the new Act. Regulators emphasized, “Currently, CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya,” according to a notice quoted by Cointelegraph.
Although the licensing framework is in effect, the precise regulations needed for licensing have not yet been released by Kenya’s National Treasury. This leaves a gap in enforcement, as cryptocurrency businesses and Bitcoin ATM operators are active in public spaces without explicit authorization. Regulatory authorities warned that any company claiming to be authorized is doing so unlawfully.
Under the new law, the CBK will oversee payment and crypto custody activities, while the CMA will regulate trading and investment related to digital assets.
Market Reaction and Social Impact
Despite warnings from Kenyan regulators, the expansion of Kenya Bitcoin ATMs into high-traffic retail centers signals increased mainstream visibility for cryptocurrency services in the country. Capital News noted that while Bitcoin ATMs are new to upscale malls, informal Bitcoin use is already established, particularly in lower-income communities such as Kibera, where residents use BTC as an alternative banking method.
“In many cases, people in Kibera do not have an opportunity to secure their lives with normal savings,” AfriBit Africa co-founder Ronnie Mdawida told the outlet, adding that Bitcoin allows unbanked residents to “hold value without documentation and banking paperwork.” Usage is driven in part by the need for financial tools among people living on minimal daily incomes.
What’s Next for Crypto Regulation in Kenya?
As visible crypto infrastructure like Kenya Bitcoin ATMs becomes part of everyday life in the country, the government faces increasing pressure to clarify and enforce licensing and operational standards. The National Treasury is currently drafting regulations required to formally initiate the licensing of Virtual Asset Service Providers (VASPs), though the timeline for enforcement remains unclear.
The evolving situation highlights a regulatory grey area, with public adoption advancing faster than the development of compliance mechanisms. For further context on cryptocurrency and its role in African economies, see Vizi.com’s cryptocurrency news section.
Sources
Reporting via Cointelegraph, Capital News.
