Kenya Drops Cap on Crypto Ownership, Eases Restrictions for Virtual Assets Sector
The National Treasury of Kenya has revised its Virtual Asset Service Providers (VASP) Regulations, removing a proposed cap on ownership in cryptocurrency exchanges, wallet providers, and stablecoin issuers. This change eases restrictions that experts warned would discourage investment in Kenya's virtual assets sector.
According to the final regulations, published by Treasury Cabinet Secretary John Mbadi, any individual or entity can now control more than 33.3% of a company's share capital, voting rights, board representation, dividends, or shareholder loan interests. This brings the governance framework closer to conventional corporate ownership structures.
The Treasury has also relaxed rules governing changes in ownership after licensing. The new regulations introduce a graduated approach, where transactions involving up to 10% of a firm's shares or ownership interests require only prior written notification to the regulator, while deals exceeding this threshold need approval.