Kenya’s VASP Act clarifies rules for crypto payment gateways used by businesses
AI Market Summary
Kenya's VASP Act (signed Oct 15, 2025) formalizes a regulatory framework for licensed crypto payment gateways, expanding compliant rails for merchants to accept BTC/ETH and especially stablecoins while settling in KES via M-Pesa and local banks. The news marginally improves regional adoption and reduces operational uncertainty for payment processors, with the primary near-term effect concentrated on stablecoin-based payments rather than broader token-specific catalysts.
Impact level
● Low
Affected assets
BTC/USDT+3.23%
AI Insight · BTC/USDTAI Insight
▲ Bullish
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On Oct. 15, 2025, Kenyan President William Ruto signed the Virtual Asset Service Providers (VASP) Act, establishing a clear regulatory framework for crypto payment gateways. Under the law, platforms including BitPesa (AZA Finance), ZinariPay, IntaSend and Ivorypay can operate compliantly, letting merchants accept Bitcoin, Ethereum and stablecoins such as USDT and USDC while settling in Kenyan shillings (KES). These services typically integrate with M-Pesa and local banks, aiming to cut cross-border fees and speed up settlement. The impact described centers on strengthening stablecoins’ role in East Africa’s payments infrastructure, rather than direct policy benefits or risks for other major non-stablecoin tokens.
