TLDR
- Bitcoin ATMs have been installed in several major malls across Nairobi.
- The machines appeared shortly after Kenya’s new cryptocurrency law came into effect.
- Kenya’s Central Bank and Capital Markets Authority stated that no crypto providers are licensed yet.
- The Bitcoin ATMs are branded as Bankless Bitcoin and offer cash-to-crypto services.
- Regulators confirmed that licensing regulations under the new law have not yet been issued.
Bitcoin ATMs have been installed in major Nairobi malls just days after Kenya’s cryptocurrency law took effect. The machines, branded “Bankless Bitcoin,” appeared beside traditional banking outlets without government authorization. Regulators say no crypto providers have been licensed under Kenya’s new Virtual Assets Service Providers Act of 2025.
Bitcoin ATMs Enter High-End Malls Without Regulatory Clearance
Shoppers in Nairobi have reported spotting Bitcoin ATMs at upscale malls, raising concerns about regulatory compliance. The kiosks offer direct cash-to-crypto transactions, though no operator is licensed to do so. The Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) both confirmed that no licensed providers are available.
Authorities clarified that, while the law is in place, the actual licensing procedures are pending final regulations. “CBK and CMA have not licensed any VASPs under the Act,” the regulators stated in a joint notice. They emphasized that crypto firms claiming authorization are operating illegally.
Despite this, Kenya’s shopping centers have seen the installation of machines facilitating Bitcoin purchases. The machines operate publicly in full view of regulators and consumers. This comes even as the government finalizes the regulatory details.
New Machines Operate as Legal Uncertainty Persists
The machines carry branding and are located near established bank booths. They function like standard ATMs but convert cash to Bitcoin. Locals interact with them just as they do with other kiosks.
Yet, Kenya’s current legal structure doesn’t permit unlicensed crypto services. The Virtual Assets Service Providers Act became effective on November 4. Still, licensing mechanisms are not yet in place.
This creates confusion as businesses continue to install and operate machines. The CBK has urged caution until licensing regulations are finalized. However, enforcement appears limited so far.
Bitcoin Use Expands in Low-Income Neighborhoods
In neighborhoods like Kibera, Bitcoin is used as an informal savings method. Many residents prefer it because there are no banking requirements. “It is financial freedom,” said AfriBit Africa co-founder Ronnie Mdawida.
He explained that people in informal settlements lack documentation for traditional banks. Bitcoin allows them to store value independently. This has fueled local adoption despite legal ambiguity.
Residents use the digital currency for day-to-day financial needs. Its peer-to-peer model helps avoid the constraints of traditional banking. These trends persist even as the regulatory framework remains unfinished.
Previous Bitcoin ATMs Had Minimal Impact
This is not the first time Kenya has seen Bitcoin ATMs. In 2018, BitClub installed similar machines in Nairobi. However, they failed to reach mainstream retail areas.
CoinATMradar currently lists only two Bitcoin ATMs in Kenya. That figure may not reflect the recent mall installations. Capital News reported these new machines appear in multiple locations.
They differ from earlier deployments by targeting high-traffic malls. Past devices were largely unnoticed by the broader public. Now, the visibility is much higher.
Regulators Await Treasury Guidance Before Licensing Starts
The CBK stated that the National Treasury will issue supporting regulations. These are necessary to begin licensing under the Act. Until then, all VASPs remain unlicensed.
The Capital Markets Authority also confirmed it has not approved any firm. Both institutions asked firms to wait for official clearance. Public warnings remain active across multiple platforms.
Kenya’s crypto law is in effect, but the enforcement mechanism is still incomplete. While that gap remains, unlicensed operations continue. Authorities have not disclosed when licensing will begin.
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