Bitcoin ATMs have appeared in major Nairobi malls justdays after Kenya’s new crypto law took effect, prompting regulators to warnthat no operator has been cleared to run digital-asset services in the country.Digital assets meet tradfi in London at the fmls25Local media outlet Capital News reported that the machines, branded “Bankless Bitcoin,” have been spottedbeside traditional bank ATMs in some of the country’s popular malls such as TwoRivers, in Westlands and along Ngong Road, giving shoppers access tocash-to-crypto services even as the country’s licensing regime remainsincomplete.Public Notice on the Virtual Assets Service Providers Act 2025 pic.twitter.com/suDoXIVWhN— Central Bank of Kenya (@CBKKenya) November 18, 2025Kenya began enforcing the Virtual Assets Service Providers Act on November 4, setting out a formal structure for licensingexchanges, custodial wallet providers and other crypto platforms.Under the law, the Central Bank of Kenya will regulatepayment and custody activities, while the Capital Markets Authority willsupervise trading and investment services.Regulators Say the Market Is Not Yet LicensedHowever, the National Treasury has not yet issued thedetailed regulations needed to activate the licensing process. In a jointnotice on Tuesday, the CBK and CMA said no VASP has been approved, adding thatany company claiming authorization is doing so illegally.The regulators said licensing will begin only afterthe Treasury publishes the operational rules. Kenya's Virtual Assets ServiceProviders Act took effect on November 4, creating a licensing pathway forexchanges, wallet custodians and other digital-asset players.Bitcoin ATMs pop up in Nairobi malls as Kenya’s new crypto law takes effect https://t.co/72WwZJHoBl pic.twitter.com/5v4Vg9QIBF— Capital FM Kenya (@CapitalFMKenya) November 18, 2025Under the law, the Central Bank of Kenya willsupervise payment and custody functions while the Capital Markets Authoritywill oversee trading and investment activities.Yet the framework remains incomplete. The NationalTreasury has not issued the detailed regulations required to initiatelicensing. In a joint notice, the CBK and CMA stated that no crypto providerhas been authorized to operate, warning that firms claiming approval are doingso illegally.Bitcoin Climbs from Informal Settlements to High-End MallsThe sudden mall installations mark a shift fromBitcoin’s earlier presence in Kenya’s informal economy. In Kibera, Africa’slargest informal settlement, residents have used BTC for years as a workaroundfor documentation hurdles that block access to traditional banking.Keep reading: Kenya's Legislators Pass Crypto Bill to Boost Investments and OversightToday, about 200 people in Soweto West, a villagewithin Kibera, reportedly use Bitcoin. Some boda boda riders and smallmerchants accept payments through the Lightning Network, viewing it as fasterand cheaper than mobile money. Supporters see the spread of Bitcoin, from thebackstreets of Kibera to malls like Two Rivers, Westlands and branches alongNgong Road, as evidence of a technology that offers open access to financialtools. But Bitcoin’s volatility and the sector’s unregulated history continueto raise alarms.Until the Treasury issues the final regulations, thecountry sits in a holding pattern. Bitcoin ATMs stand beside traditionalbanking machines in upscale retail centers while unlicensed crypto paymentsmove through Kibera’s informal economy. This article was written by Jared Kirui at www.financemagnates.com.