Bitcoin ATMs have appeared in busy Nairobi malls just days after Kenya started its new crypto law. However, the machines were installed even though regulators say no provider has a license. They were seen in places like Two Rivers Mall and Westlands, therefore raising questions about how the rules will be enforced.
Local outlet Capital News reported that the orange “Bankless Bitcoin” machines were placed beside normal banking kiosks. They let people buy and sell Bitcoin using cash. Additionally, photos shared by the outlet showed the bright machines standing in open public spaces.
Meanwhile, CoinATMradar data shows that only two Bitcoin ATMs in Kenya, yet the new sightings suggest more are now active in the city.
Notably, the law that covers crypto firms is called the Virtual Assets Service Providers Act. It took effect on November 4 after being published in October. Meanwhile, the Central Bank of Kenya and the Capital Markets Authority sent a joint notice saying no company has been approved under the new rules. “
Currently, CBK and CMA have not licensed any VASPs under the Act to operate in or from Kenya,” the notice said. They added that the National Treasury is writing the detailed rules needed before licensing can begin.
This gap has created a strange moment. People can use Bitcoin ATMs in high-end malls even though none of the operators are officially approved. The machines are rolling out at the same time the regulators warn that firms claiming approval are doing so illegally. As a result, the public is left unsure about which services are allowed.
While the mall rollouts are new, Bitcoin use is not. For instance, in Kibera, a large low-income area in Nairobi, residents have used Bitcoin for everyday needs. AfriBit Africa began giving small Bitcoin grants to garbage collectors in 2022.
Co-founder Ronnie Mdawida said many people in the area do not have IDs or bank accounts. He noted that Bitcoin lets them save money without paperwork. “In many cases, people in Kibera do not have an opportunity to secure their lives with normal savings,” he said to the local outlet.
That said, the growing use of bitcoin shows why interest in digital currency continues despite unclear regulations.
Also Read: OCC Allows U.S. Banks to Hold BTC, ETH, SOL, and XRP
