Kenya Finalizes Crypto Regulations Amid $19 Billion Inflows

The Kenyan government has finalized its framework for regulating cryptocurrency businesses in the country. The Virtual Asset Service Providers (VASP) Regulations, 2026 have been published in the Kenya Gazette Supplement No. 185 under Legal Notice No. 134, completing the implementation of the Virtual Asset Service Providers Act.

The regulations establish a licensing framework that allows regulators to approve and supervise firms operating in the sector. They require firms serving Kenyan customers, including those without a physical presence in the country, 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.

The framework also covers stablecoins, initial coin offerings, tokenised real-world assets, digital wallets, advertising, market conduct, and enforcement. Licensed firms must maintain governance frameworks, conduct customer due diligence, retain transaction records for at least seven years, submit regular regulatory reports, and implement cybersecurity and business continuity measures.

The regulations follow a four-month public consultation launched in March, during which the National Treasury invited comments from industry participants, consumers, and other stakeholders. The Central Bank of Kenya will supervise virtual asset-to-fiat conversion services and stablecoin issuers, while the Capital Markets Authority will regulate exchanges, token issuance platforms, initial coin offerings, and tokenisation activities.