Kenya Sets Ground Rules for Crypto Firms with Comprehensive Licensing Regime

Kenya has finalized its regulatory framework for cryptocurrency and other digital asset businesses. The Virtual Asset Service Providers (VASP) Regulations, 2026, have been published in the Kenya Gazette Supplement No. 185 under Legal Notice No. 134.

The new regulations establish a comprehensive licensing regime that places cryptocurrency firms under formal regulatory oversight. Licensed firms must meet governance and minimum capital standards, implement anti-money laundering measures, strengthen cybersecurity systems, protect customer assets, and comply with ongoing reporting and consumer protection obligations.

The move is expected to improve investor confidence and encourage responsible innovation by establishing clear operating standards for virtual asset service providers. Kenya joins a growing number of jurisdictions introducing dedicated rules for the cryptocurrency sector as governments seek to balance financial innovation with consumer protection and stability.