Kenya and Nigeria Clarify Crypto, Digital Asset Rules
New legislation in Kenya and Nigeria creates clearer frameworks for digital assets, while pension funds get the green light to invest in VC and PE.
## What's New
Kenya's Virtual Asset Service Provider Bill of 2025 establishes a legal foundation for digital assets. Nigeria's 2025 Securities Act clarifies rules for crypto assets and market conduct. Both countries now allow pension funds to invest in private equity and venture capital.
Why It Matters
Regulatory clarity is what institutional capital has been waiting for. The pension fund changes alone could unlock billions in local capital for African startups—reducing dependence on foreign VC. Crypto exchanges can now operate with clearer compliance paths.
The Details
Kenya - **Virtual Asset Service Provider Bill 2025:** Creates licensing framework for crypto businesses - **Pension fund reform:** Funds can now allocate to PE/VC - **M-Pesa integration:** UAE blockchain project eyeing Africa growth through M-Pesa deal
Nigeria - **2025 Securities Act:** Clarifies crypto asset governance and market conduct rules - **SEC approvals:** Quidax and Busha received exchange licenses through ARIP program - **Pension fund access:** Updated regulations allow PE/VC investments
Ghana - Also updated pension regulations to permit PE/VC allocations
Market Impact
Early-stage fintech funding rebounded in H1 2025, with $1 billion raised—a 40% increase over H1 2024. The regulatory clarity is enabling more institutional participation.
Startup Casualties
Not all fintechs survived the transition: - **Joovlin** (Nigeria): Shut down January 2025 after failing to secure follow-on funding - **Bento Africa** (Nigeria): Halted operations February 2025 amid tax/pension fraud allegations; lost Moniepoint and Paystack as clients - **54 Collective** (South Africa): Mastercard Foundation terminated grant after $689K rebrand controversy
Sources
- [Chambers: Fintech 2025 Nigeria](https://practiceguides.chambers.com/practice-guides/fintech-2025/nigeria/trends-and-developments/O20012)
- [Fintech News Africa: Key trends 2025](https://fintechnews.africa/44750/fintechafrica/key-fintech-trends-in-africa-to-watch-in-2025/)
- [Semafor: UAE blockchain M-Pesa deal](https://www.semafor.com/article/12/24/2025/uae-blockchain-project-eyes-africa-growth-through-m-pesa-deal)
- [TechCabal: Notable deal collapses 2025](https://techcabal.com/2025/12/26/africas-most-notable-tech-deal-collapses-in-2025/)
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