Bitcoin ATMs Emerge in Nairobi Amid Regulatory Challenges

According to Cointelegraph, Bitcoin ATMs have been installed in major shopping malls across Nairobi shortly after Kenya enacted its first comprehensive cryptocurrency law. This development presents an immediate challenge for regulators, as no crypto provider has yet been authorized to operate under the new legislation. Local media outlet Capital News reported that these machines, branded 'Bankless Bitcoin,' have been placed alongside traditional banking kiosks, offering cash-to-crypto services to the public. The introduction of Bitcoin ATMs is not entirely new to Kenya. In 2018, The East African reported that BitClub installed Bitcoin ATMs in Nairobi, although their adoption was limited, and they did not penetrate mainstream retail spaces. CoinATMradar data shows that there are currently only two reported Bitcoin ATMs in the country. The recent installations coincide with the implementation of Kenya’s Virtual Assets Service Providers Act of 2025, which came into effect on November 4. This act established a formal licensing framework for wallet operators, exchanges, custodians, and other crypto platforms. Under the new law, the Central Bank of Kenya (CBK) is tasked with overseeing payment and custody functions, while the Capital Markets Authority (CMA) regulates investment and trading activities. Despite the law being in place, the necessary regulations to initiate the licensing of Virtual Asset Service Providers (VASPs) have not yet been issued. Consequently, providers are currently operating without the required licenses. In a joint notice, the CBK and CMA emphasized that no VASP has been licensed under the new laws to operate in or from Kenya, warning that any claims of authorization are illegal. The presence of Bitcoin ATMs in upscale malls highlights the expansion of Kenya’s informal crypto ecosystem, even as it operates in a regulatory gray area. Capital News noted that while these ATMs are just beginning to appear in more affluent areas, Bitcoin usage has been prevalent in lower-income neighborhoods like Kibera. In these areas, residents use Bitcoin as an alternative form of banking. AfriBit Africa co-founder Ronnie Mdawida explained that Bitcoin allows residents to hold value without the need for documentation or banking paperwork, offering what he described as 'financial freedom' for those living on minimal income.