Kenya Tightens Screws on Crypto Exchanges with Strict New Regulations
Kenya has set strict new rules for virtual asset service providers (VASPs) in an effort to secure financial stability and exit the Financial Action Task Force (FATF) grey list.
The Virtual Asset Service Providers Regulations, gazetted as Legal Notice No. 134 of 2026 on July 22, are intended to bring crypto exchanges and stablecoin issuers under stricter oversight similar to traditional commercial banks and stock brokerages.
The regulations apply to cryptocurrency exchanges, custodial wallet providers, brokers, and stablecoin issuers, requiring them to demonstrate institutional stability by meeting specific capital and liquidity requirements.
Existing VASPs have a transitional period until November 4, 2026, to align their operations with the new law, after which unregistered exchanges and wallet providers will face shutdown and potential prosecution.