Kenya finalises crypto licencing framework for exchanges, digital asset firms

Kenya has gazetted the Virtual Asset Service Providers (VASP) Regulations, 2026, finalising the country’s legal framework for licencing and supervising cryptocurrency exchanges, wallet providers, stablecoin issuers, and other digital asset businesses. The regulations were published in Kenya Gazette Supplement No. 185 under Legal Notice No. 134 on Friday, completing implementation of the Virtual Asset Service Providers Act, which President William Ruto assented to in October 2025.  The regulations mark the final step in Kenya’s effort to bring cryptocurrency businesses under formal regulatory oversight. They create, for the first time, a licencing framework that allows Kenya’s regulators to approve and supervise firms operating in the sector. Kenya is one of East Africa’s largest cryptocurrency markets, recording about $19 billion in crypto inflows between July 2024 and June 2025, according to blockchain analytics firm Chainalysis. It ranked second in the region by transaction value, behind Ethiopia.  The rules require firms serving Kenyan customers, including those without a physical presence in the country, to obtain licences, meet governance and capital requirements, implement anti-money laundering and cybersecurity controls, safeguard customer assets, and comply with ongoing reporting and consumer protection obligations. It is Kenya’s most consequential provision for all virtual asset service providers operating in, or from, the country. The regulations follow a four-month public consultation process launched in March, during which the National Treasury invited comments from industry participants, consumers, and other stakeholders. During the consultation, crypto firms argued that some proposed capital and compliance requirements risked pricing smaller operators out of the regulated market. Government officials continued engaging crypto firms through industry consultations before finalising the regulations. The framework also sets rules for stablecoins, initial coin offerings, tokenised real-world assets, digital wallets, advertising, market conduct, and enforcement. It also extends to foreign providers that actively target Kenyan customers or derive economic benefit from the country, even without a physical presence.  Under the framework, licenced firms must maintain governance frameworks, conduct customer due diligence, retain transaction records for at least seven years, submit regular regulatory reports, and implement cybersecurity and business continuity measures.  Oversight is split between Kenya’s financial regulators. The Central Bank of Kenya (CBK) will supervise virtual asset-to-fiat conversion services and stablecoin issuers, while the Capital Markets Authority (CMA) will regulate exchanges, token issuance platforms, initial coin offerings, and tokenisation activities under the VASP Act and accompanying regulations. The CBK had already begun preparing for the new regime in April, when it advertised vacancies for roles covering licencing, product approval and compliance for virtual asset service providers. With the regulations now gazetted, crypto firms can begin the process of seeking approval to operate under the new regime.  True scale demands moving beyond surface-level integrations to robust execution. We’ve filtered the noise out of Moonshot 2026, optimising the conference strictly for high-calibre connections between startup founders, global financial operators, enterprise leaders and individuals rewiring Africa’s technical frameworks. Get 20% off Early Bird tickets for a limited time.