New Bitcoin ATMs have been installed in several major shopping centers in Nairobi, just days after Kenya introduced its first comprehensive crypto law. The introduction of these machines immediately causes confusion, because regulators emphasize that no crypto service provider currently has a valid license.
According to local reporting from Capital News, the machines, which operate under the name Bankless Bitcoin, will be located next to existing bank kiosks and offer residents the opportunity to convert cash into Bitcoin. Yet regulators warn that such services are not yet officially allowed to operate.
Previous Bitcoin ATMs had little success
This is not the first time that Bitcoin ATMs have been spotted in Kenya. In 2018, the company BitClub installed several machines in Nairobi, but they were hardly used and eventually disappeared from the streets. Current data sourced from CoinATMradar shows that there are only two Bitcoin ATMs officially operating in the entire country.
New crypto law without detailed permits
The rapid proliferation of new machines coincides with the introduction of the Virtual Assets Service Providers Act of 2025, which for the first time introduces a formal licensing framework for crypto companies, including exchanges, wallet providers and custodial services.
The responsibilities are divided between two supervisors:
- The Central Bank of Kenya (CBK) oversees payment and storage services.
- The Capital Markets Authority (CMA) controls trading and investment activities.
Although the law is already in force, the detailed rules necessary to grant permits are lacking. This means that crypto companies cannot currently apply for a license and therefore automatically operate without permission. In a joint statement, CBK and CMA clarified that no license has yet been issued.
Bitcoin Growth Despite Uncertain Regulatory Environment
The rise of Bitcoin ATMs in luxury shopping centers clashes with the message from regulators that all providers are currently operating illegally. Yet this development shows that the crypto market in Kenya continues to expand rapidly, even without fully developed legislation.
According to Capital News, the visibility of crypto infrastructure has increased especially in higher-end retail areas. At the same time, the actual use of Bitcoin is growing, especially in poorer neighborhoods, such as Kibera. There, residents use Bitcoin to safely store small amounts of money or to make daily payments.
Bitcoin as a financial safety net for low incomes
Ronnie Mdawida, co-founder of AfriBit Africa, explains that in neighborhoods like Kibera, Bitcoin plays an important role for people who do not have access to traditional banking services.
“Many people in Kibera cannot safely deposit their savings in a bank,” said Mdawida. “Bitcoin allows them to store value without bank documents or complicated procedures.”
According to him, this offers a form of financial freedom for households that sometimes have to live on one dollar a day.
Conclusion
The sudden emergence of Bitcoin ATMs in Nairobi highlights the rapid growth of crypto usage in Kenya. Yet the sector continues to operate in uncertain legal territory until the government develops the full licensing procedures. Only then will it become clear how the crypto market can further develop within an officially regulated framework.
Source: https://newsbit.nl/nieuwe-bitcoin-geldautomaten-duiken-op-in-nairobi-terwijl-kenia-wacht-op-cryptolicenties/
