South Africa and Mauritius have made bigger strides towards the regulation and adoption of cryptocurrencies than Kenya, a new assessment shows, giving them an edge in creating thriving digital assets ecosystems on the continent.
A new report by PwC, which provides an overview of the global regulatory landscape shows that South Africa and Mauritius have in place extensive legislation and regulation, including the requirement that crypto exchanges and providers share sender/receipt information for transfers as part of rules against money laundering.
South Africa and Mauritius, however, have yet to regulate stable coins but have actively begun talks and consultations on establishing rules on dealing with the class of digital assets.
Kenya has yet to establish any crypto-related regulations but is at an advanced stage of putting in place a legislative framework.
“There is no explicit regulation in place (in Kenya) to regulate crypto assets,” the report says.
“The Kenyan government intends to establish a framework for utilising these technologies, reflecting a more progressive approach to digital currencies over the next decade" it added.
The Treasury has recently published the Virtual Assets Service Providers Bill 2025, which compels virtual currency exchanges and wallet providers to disclose cryptocurrency owners.
According to data from Statista, the number of Kenya’s cryptocurrency users has soared to 733,300 as of 2025 from a low of 10,400 in 2017.
The government’s outlook on cryptocurrencies has evolved over the years, initially from caution to the current transition towards possible exploration and potential adoption of digital currencies and emerging technologies.
There is, however, currently no asset classification framework in place as CBK does not recognise cryptocurrency as a legal tender.
The CBK has actively explored the potential for a Central Bank Digital Currency in collaboration with other central banks around the world.
The apex bank sought public input on the applicability of a CBDC in Kenya, reflecting its cautious and systematic approach.
In December last year, Kenya’s Parliament published a draft national policy on virtual assets and virtual assets service providers alongside the Virtual Asset Service Providers Bill 2025.
“The main objective of the policy is to guide the development of a fair, competitive, and stable market for virtual assets and virtual assets service providers in Kenya,” the report adds.
“The bill, if enacted into law, will provide a legislative framework to regulate virtual asset service providers and address risks associated with the misuse of virtual assets products and virtual asset service provider services.”
The European Union, Bahamas, Cayman Islands, Gibraltar, Guernsey Liechtenstein, Switzerland, and the United Arab Emirates have the most complete regulatory frameworks including rules on the use of stablecoins and safeguards against anti-money laundering.
Regulatory clarity around cryptocurrencies and related assets is seen as supporting institutional engagement, which would pave the way for broader market participation and innovation.
