Kenya Unveils Comprehensive Crypto Regulations with Stringent Licensing Requirements

Kenya has published its Virtual Asset Service Providers (VASP) Regulations, 2026, marking one of Africa's most comprehensive regulatory frameworks for digital assets. The regulations cover nearly every segment of the industry, including issuance and trading, custody, tokenization, and stablecoins.

The framework requires virtual asset service providers to obtain licenses, which involve extensive disclosure requirements, including directors' information, source of funds, governance structures, cybersecurity policies, AML procedures, and business continuity plans. Regulators must determine complete license applications within 30 days after due diligence is completed.

Kenya has also established a dedicated regulatory regime for stablecoins, requiring issuers to obtain separate licenses, publish white papers, maintain reserve assets, ensure redeemability, undergo audits, and submit ongoing reports. The regulations prohibit issuers from paying interest on stablecoins.