Kenya Cracks Down on Crypto License Speculation with 3-Year Rule

The National Treasury in Kenya has introduced new restrictions on the transfer of cryptocurrency licenses. The new Virtual Asset Service Providers (VASP) Regulations, 2026, require operators to hold and actively use their permits for at least three years before they can be sold or assigned to another party.

The regulations aim to curb speculative licence trading, where individuals or firms acquire regulatory licences not to operate cryptocurrency businesses but to later sell or transfer the permits for a profit once they become scarce or more valuable.

Under the new rules, licensees seeking to assign or transfer a licence must have held it for at least 36 months from the date operations began. They also require that applicants commence operations within 12 months of receiving a licence.