Luno resumes operations in Kenya following a decade-long absence
After a decade-long absence, cryptocurrency exchange Luno has made a comeback in Kenya. This resurgence is a testament to the East African country's warming stance towards digital assets and the significant shift in its regulatory environment.
The turning point came in 2025 when Kenya introduced the Virtual Asset Service Providers (VASP) Bill. This comprehensive crypto regulatory framework proposes a multi-agency regulatory body, involving five key government agencies, to license and regulate crypto businesses. The aim is to ensure market integrity, consumer protection, and foster innovation within a controlled environment.
The revised regulatory proposals have introduced stricter requirements for virtual asset service providers. For instance, they must maintain a physical office in Kenya for on-site inspections and compliance verification. The regulation also splits oversight between different regulators depending on the crypto service type.
With these forward-thinking changes, Kenya is positioning itself as a leading hub for cryptocurrency in Africa. Luno's return to Kenya is likely a result of the country's active licensing and regulating of crypto entities in a structured manner.
Now, Luno users in Kenya can access various cryptocurrencies on the platform and swap Kenyan shillings for these digital assets directly on the Luno platform. The exchange's return also means that Kenyan users will benefit from trading pairs that include the Kenyan shilling for easy offramps and onramps.
It's important to note that exchanges in Kenya may need to establish local offices and comply with anti-money laundering (AML) and consumer protection standards before operating freely in the country.
First established in Kenya under a different name between 2013 and 2014, Luno rebranded as Luno in 2017 and expanded into other African and European markets. With its return to Kenya, Luno is once again offering cryptocurrency services in the country.
Kenya's recent legislative and regulatory reforms reflect a significant shift towards legitimizing and supporting cryptocurrency businesses, making it possible for Luno to operate legally in Kenya once again. This evolving regulatory environment is expected to encourage innovation, investment, and market growth in the cryptocurrency sector.
- In 2025, Kenya introduced the Virtual Asset Service Providers (VASP) Bill, a comprehensive crypto regulatory framework that proposes a multi-agency regulatory body for licensing and regulating crypto businesses.
- The regulation in Kenya now requires virtual asset service providers to maintain a physical office in Kenya for on-site inspections and compliance verification.
- With these regulatory changes, Kenya is positioning itself as a leading hub for cryptocurrency in Africa, attracting companies like Luno back to the market.
- After rebranding as Luno in 2017 and expanding into other African and European markets, Luno has now returned to Kenya, offering cryptocurrency services once again.
- The evolving regulatory environment in Kenya, with its focus on market integrity, consumer protection, and fostering innovation, is expected to encourage investment and market growth in the cryptocurrency sector, particularly in digital assets like Bitcoin.
