Quick Takeaways:
- Bitcoin ATMs have appeared in Nairobi malls despite no licensed VASPs.
- Kenyan regulator admonishes that suppliers claiming approval are acting illegally.
- The report highlights gaps between the new crypto law and enforcement.
Bitcoin ATMs Emerge Days After New Law Takes Effect
Bitcoin ATMs have appeared across major Nairobi malls only days after Kenya activated its first comprehensive crypto law. Local reports say the machines, branded “Bankless Bitcoin,” now sit beside traditional banking kiosks and offer cash-to-crypto services.
This rapid rollout is testing regulators who insist that no crypto firm is authorised yet. The ATMs raise immediate questions about compliance and oversight.
Kenya’s History With Bitcoin ATMs
Kenya has seen a Bitcoin atmosphere earlier. In 2018, BitClub set up a car in Nairobi, though adoption remains low. Most devices never reached major retail nitty-gritty. Today, CoinATMradar has only two operational Bitcoin ATMs in the country.
The arrival of an unprecedented whole in mainstream malls signals a switch. Crypto infrastructure is becoming more visible in public spaces, yet as rules remain unclear.
A New Licensing Framework With No Licensed Firms
Kenya’s Virtual Assets Service Providers Act of 2025 came into force on Nov. 4. The framework regulates exchanges, wallets, custodians, and other VASPs.
Under the Act, the Central Bank of Kenya (CBK) oversees payment and custody activity. The Capital Markets Authority (CMA) regulates trading and investment functions.
However, regulators say licensing cannot begin until the National Treasury issues detailed regulations.
Regulators Warn: No VASP Is Licensed Yet
In a joint notice, the CBK and CMA warned the public that no company is authorised to operate as a VASP. They stressed that any provider claiming approval is acting illegally.
“CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya,” the central bank said. The regulators urged caution as the Treasury prepared the rules that will trigger the licensing process.
This gap has created a mismatch. Bitcoin ATMs are entering malls while the legal environment remains incomplete.
Crypto Expands From Backstreets to Upscale Retail
The machines also highlight Kenya’s evolving crypto landscape. Bitcoin has grown rapidly in lower-income areas like Kibera, where residents use BTC as a form of informal banking.
“In many cases, people in Kibera do not have an opportunity for normal savings,” AfriBit Africa co-founder Ronnie Mdawida told Capital News. He said Bitcoin helps users store value without formal documents, offering “financial freedom” to those living on a dollar a day.
Now, Bitcoin is moving from backstreets to upscale shopping centres. The shift underscores the rising demand for crypto admission, yet as regulators admonish that the sector stands unlicensed.
Regulators Front-Pressure Level as Adoption Accelerates
Kenya’s new crypto law is intended to bestow order. Instead, the appearance of newfangled Bitcoin ATMs bears witness to how fast the industry is growing. The hail weeks will let on whether enforcement can keep up with lifting public adoption.