Kenya Cracks Down on Crypto Sector with New Regulatory Framework

Kenya is moving to regulate its growing cryptocurrency and digital assets sector, with the Capital Markets Authority (CMA) aiming to establish a formal framework for oversight, accountability, and investor protection.

The proposed regulations come as the country sees rising adoption of cryptocurrencies, blockchain technology, and digital financial products. Speaking at a crypto conference in Nairobi, CMA Deputy Director Justus Agoti said regulators must evolve alongside technological advancements while ensuring proper safeguards are in place.

'We are looking at how best we can support this market to grow in an orderly, safe and efficient manner while ensuring consumer protection and market integrity,' Agoti said. He noted that financial markets globally have transformed significantly due to technology, forcing regulators to adapt to emerging innovations such as blockchain and tokenized assets.

Under the proposed framework, all virtual asset service providers operating in Kenya will be required to register locally or establish representative offices in the country before obtaining licenses. Agoti acknowledged concerns over licensing costs and compliance requirements but defended the need for oversight, saying 'every functioning market has rules.'