Kenya Introduces Comprehensive Crypto Regulations with Higher Capital Requirements

The Central Bank of Kenya (CBK) has introduced comprehensive regulations for cryptocurrency businesses in the country, aiming to strengthen financial regulation and protect consumers.

The new framework sets licensing, capital, liquidity, and consumer protection requirements for virtual asset service providers (VASPs), including stablecoin issuers, virtual asset exchanges, wallet providers, and Initial Coin Offering (ICO) facilitators.

The regulations come into effect under Legal Notice No. 134 of 2026 and establish a formal licensing regime that sets clear entry requirements for businesses seeking to operate within Kenya's cryptocurrency industry.