Just days after Kenya‘s new cryptocurrency law came into effect BitcoinATMs have appeared in major shopping malls in the capital, Nairobi. This has prompted regulators to state that no operator has been approved to provide digital asset services in the country.
According to local media reports, ATMs called «Bankless» Bitcoin» have appeared next to traditional bank ATMs in some of the country’s popular shopping malls, such as Two Rivers, Westlands, and along Ngong Road. They provide users with access to cash-for-cryptocurrency exchange services, despite the country’s licensing system not yet being fully developed.
Kenya’s Virtual Asset Service Providers Act came into effect on November 4, establishing a formal licensing framework for exchanges, custodial wallet service providers, and other crypto platforms.
According to the document, the Central Bank of Kenya will regulate payment and custody activities, and the Capital Markets Authority will oversee trading and investment services.
However, the National Treasury has not yet published the detailed rules necessary to launch the licensing process. Regulators have stated that licensing will begin only after the Ministry of Finance publishes the operating rules.
Rapid appearance BitcoinThe emergence of ATMs in shopping malls marks its emergence from the informal economy in Kenya. In Kibera, Africa’s largest informal settlement, residents have used bitcoin for years as a way to circumvent documentation barriers to accessing traditional banking services.