NAIROBI, Kenya, Dec 11 – Kenya’s recently enacted Virtual Assets Service Providers (VASP) Act, 2025, is reshaping the country’s crypto landscape, drawing a fresh wave of retail investors even as regulators warn of heightened risks during the transition to full oversight.
The law places crypto exchanges, custodial wallets, and virtual-asset intermediaries under the authority of the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK).
It introduces compulsory licensing, due diligence checks, and consumer-protection obligations, ending years of unregulated activity in a fast-growing sector.
However, with licensing frameworks still being operationalized, no exchange or wallet operator has yet been formally approved.
Industry players say this regulatory gap, combined with rising public interest, could expose inexperienced Kenyans to losses, especially as many rush into crypto markets without a clear investment plan.
Market analysts note that crypto uptake often surges in periods of regulatory clarity, but trading behavior becomes riskier when new investors attempt to time price swings. A warning echoed in global markets is now relevant locally: most investors lose money not due to lack of opportunity, but due to emotional decision-making and poorly timed trades.
Global crypto exchange Bybit observes that investors frequently attempt to time market entry, a practice that historically results in panic-selling, sudden losses, and inconsistent investment behavior.
As part of its guidance on disciplined investing, Bybit emphasizes a strategy known as Dollar Cost Averaging (DCA).
“Contrary to popular belief, the bottom of the crypto market cannot be perfectly timed.”
“DCA allows you to buy during both market highs and lows, thereby reducing the impact of volatility while lowering your average entry price.”
Bybit says human error often disrupts long-term plans, leading it to develop automated DCA trading tools designed to execute scheduled purchases without emotional bias.
The company states that these tools offer customizable intervals, low minimum investment thresholds, and support for multiple cryptocurrencies.
The firm stresses that automation does not remove risk, especially as Kenya’s regulatory environment continues to evolve, but it can reinforce discipline at a time when retail enthusiasm is high.
With new rules still bedding in and oversight structures tightening, Bybit advises investors to prioritize consistent, informed strategies over speculation.
