Kenya Unveils Virtual Asset Regulations with Tight Licensing Deadline

Kenya has introduced its long-awaited regulatory framework for virtual asset service providers. The Virtual Asset Service Providers (VASP) Act, signed by President William Ruto in October 2025, brings a licensing regime covering crypto exchanges, wallet providers, stablecoin issuers, and token platforms.

Oversight will be split between two regulators: the Central Bank of Kenya supervising virtual asset-to-fiat conversion services and stablecoin issuers, while the Capital Markets Authority oversees exchanges, token issuance platforms, and tokenization activities.

The regulations establish a transition period with existing operators having until November 4, 2026, to secure licenses. Kenya is one of Africa's largest crypto markets, recording roughly $19 billion in on-chain inflows between July 2024 and June 2025.