Kenya Finalizes Crypto Licencing Framework for Exchanges and Digital Asset Firms
Kenya has finalized its crypto licencing framework for exchanges and digital asset firms. The country's Virtual Asset Service Providers (VASP) Regulations, 2026, were published in the Kenya Gazette Supplement No. 185 under Legal Notice No. 134 on Friday, completing implementation of the Virtual Asset Service Providers Act.
The regulations require firms serving Kenyan customers to obtain licenses, meet governance and capital requirements, implement anti-money laundering and cybersecurity controls, safeguard customer assets, and comply with ongoing reporting and consumer protection obligations.
Kenya's financial regulators will oversee crypto firms, with the Central Bank of Kenya (CBK) supervising virtual asset-to-fiat conversion services and stablecoin issuers, while the Capital Markets Authority (CMA) will regulate exchanges, token issuance platforms, initial coin offerings, and tokenisation activities.
The framework also sets rules for stablecoins, initial coin offerings, tokenised real-world assets, digital wallets, advertising, market conduct, and enforcement. It extends to foreign providers that actively target Kenyan customers or derive economic benefit from the country.