In a decade's return, Luno re-establishes storefront in Kenya, aligning with efforts towards cryptocurrency regulation
In a significant move for the Kenyan cryptocurrency industry, UK-based digital asset platform Luno has relaunched in the country after a decade-long absence. This comeback is part of the company's expansion into African markets, reflecting growing confidence among crypto firms as the Kenyan government moves closer to introducing formal regulations for digital assets.
Luno, which was previously known as BitX, operated in Kenya under the BitX name until its exit in 2014. Now, it has repositioned itself as a full-fledged cryptocurrency exchange app, allowing Kenyan users to buy and sell cryptocurrencies instantly using the Kenyan Shilling (KES). The setup supports both local transactions and arbitrage trading.
The regulatory landscape in Kenya is undergoing significant changes to foster a more structured and compliant cryptocurrency industry. The government has proposed a comprehensive regulatory framework involving five key agencies: the Central Bank of Kenya (CBK), Capital Markets Authority (CMA), Competition Authority of Kenya, Communications Authority of Kenya, and the Office of the Data Protection Commissioner.
Under this framework, crypto exchanges, including Luno, must formally register with both the CMA and CBK. Licensees are now required to maintain a physical office in Kenya, allowing regulators to conduct on-site inspections and verify compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) obligations.
The Virtual Asset Service Providers (VASP) Bill 2025, which is currently being reviewed by Kenya's Parliament, also seeks to cover stablecoins, wallets, exchanges, and token offerings. It aims to license and regulate all digital asset providers, with a focus on consumer protection, financial transparency, and market stability.
Apollo Sande, country manager of Luno Kenya, stated that the company aims to make crypto accessible, transparent, and trusted for both individual and institutional users. Luno has also been granted a crypto-asset service provider (CASP) license in South Africa in 2024 and is awaiting a provisional license in Nigeria through the Securities and Exchange Commission's Accelerated Regulatory Incubation Programme (ARIP).
The change in the tax structure is expected to make trading more affordable and support growth in the sector. The Kenyan government has revised the digital asset tax rate from 3% to 1.5%, following industry criticism. Furthermore, Members of Parliament have overturned the digital asset tax and replaced it with a new excise duty on transaction fees.
Luno offers referral rewards for users who bring others to the platform and stay active. Live trading pairs available include BTC/KES, ETH/KES, USDT/KES, and USDC/KES, as well as global pairs such as BTC/USDT.
As Kenya continues to lead the way in African crypto regulation, attracting investment, fostering innovation, and creating a safer environment for digital asset users and providers, we can expect to see more crypto companies following in Luno's footsteps. An upcoming event, Moonshot, taking place in Lagos on October 15-16, featuring Africa's top founders, creatives, and tech leaders, is a testament to this growing interest. Early bird tickets are available with a 20% discount.
With its reentry into Kenya, digital asset platform Luno transforms into a full-fledged crypto exchange, providing an avenue for Kenyans to invest in cryptocurrencies using the Kenyan Shilling. As the regulatory landscape evolves,, Luno aims to uphold transparency and trust, ensuring compliance with anti-money laundering and counter-terrorism financing obligations as a registered crypto-asset service provider.
