Kenya Cracks Down on Crypto Exchanges with Sweeping New Regulations

Kenya has published sweeping new regulations for Virtual Asset Service Providers (VASPs), marking a significant shift towards a more formalized and closely monitored crypto economy.

The Virtual Asset Service Providers Regulations, 2026, establish strict licensing, capital, and consumer protection rules for crypto exchanges. Companies seeking a VASP license must submit comprehensive business plans, transparent governance structures, and fully audited financial statements.

The regulations also demand absolute proof of core capital and liquid capital adequacy to ensure exchanges can survive market downturns without risking consumer deposits.

Licensed firms are subject to strict disclosure laws, including explicit warnings about investment risks, fee structures, and the volatile nature of digital assets. Exchanges must also maintain immutable transaction records for a minimum of seven years and conduct documented due diligence before approving tokens for trading on their platforms.