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Bitcoin ATMs Appear in Nairobi Malls, Regulators Warn No VASPs Are Licensed Yet

The post Bitcoin ATMs Appear in Nairobi Malls, Regulators Warn No VASPs Are Licensed Yet appeared first on Coinpedia Fintech News

Bitcoin ATMs have started appearing in some of Nairobi’s busiest malls, just days after Kenya’s new law on virtual assets came into effect. 

According to a local media outlet, Capital News, the bright orange “Bankless Bitcoin” machines can be seen in popular spots like Two Rivers Mall in Gigiri, Westlands, and along Ngong Road. They now sit side by side with regular bank ATMs, which reflects the push to make cryptocurrency part of mainstream retail spaces.

Bitcoin ATMs Hit Nairobi Malls

These kiosks allow users to buy and sell Bitcoin, bringing cash-to-crypto transactions into busy public spots. This comes just as Kenya’s new Virtual Assets Service Providers Act, 2025, took effect on 4 November. 

In a joint statement, the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) shared that the law sets out a legal framework for regulating and overseeing VASPs in Kenya and also outlines the responsibilities of VASPs to help prevent money laundering, terrorist financing, and the spread of illicit funds.

The law gives the CBK and CMA joint authority for regulating all VASPs in Kenya. They will handle licensing, supervision, and oversight for services like crypto exchanges, digital wallets, and other platforms dealing with digital assets.

No VASPs Approved Yet

The National Treasury is now preparing detailed rules to put the new law into action, and the licensing of virtual asset providers (VASPs) will only start once these regulations are issued.

Although the Bitcoin ATMs have appeared, the regulators warned that no VASPs have been officially approved yet, so any company claiming to be licensed is operating illegally. 

“Currently CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya,” the notice warned. 

Bitcoin Adoption In Low-Income Areas

Although these Bitcoin ATMs are among the most visible signs of crypto in Nairobi’s formal retail sector, Bitcoin has already been in use in the last few years in lower-income areas like Kibera. 

In Soweto West, a part of Kibera, the fintech startup Afrobit Africa started testing Bitcoin-denominated grants in 2022, helping local garbage collectors who often don’t have IDs, bank accounts, or access to mobile money.

After weekend clean-ups, workers in Kibera are paid small amounts of Bitcoin instead of cash. AfriBit Africa estimates it has distributed around $10,000 this way. 

The co-founder, Ronnie Mdawida, says Bitcoin gives residents a way to store value and achieve a form of “financial freedom” without needing a bank account or formal ID, which is especially meaningful for people living on about a dollar a day.

About 200 people in Soweto West now use Bitcoin, with some merchants and boda boda riders accepting it through the low-fee Lightning network. Many residents also see crypto as more efficient than Kenya’s mobile money system.

Bitcoin is gaining ground in Kenya, from Kibera’s streets to Nairobi’s malls. However, its volatility and the unclear rules have concerned regulators. The new law aims to regulate the sector, protect consumers and the financial system while encouraging innovation.







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