Kenya Cracks Down on Crypto Firms with New Licensing Regulations

Kenya's new crypto regulations aim to strike a balance between financial stability and market integrity. The regulations, outlined in Legal Notice No. 134 of 2026, provide a detailed blueprint for licensing, supervising, and holding accountable virtual asset service providers (VASPs) in Kenya.

The regulations arrive at a pivotal moment, with cryptocurrency adoption expanding across the country. Policymakers have been working to strengthen anti-money laundering frameworks and improve oversight of emerging financial technologies.

For businesses already operating in the market, the regulations provide long-awaited regulatory certainty. For prospective entrants, however, they establish higher expectations around governance, capital, liquidity, cybersecurity, and consumer protection.

The strictest requirements apply to stablecoin issuers, which must maintain reserves invested in low-risk assets, hold sufficient liquid capital, segregate customer assets, and satisfy redemption obligations. This reflects how stablecoins are increasingly used within Kenya's economy for cross-border payments, remittances, and treasury operations.