Kenya's Dual-Regulator System Puts Crypto Firms to the Test

Kenya's financial overhaul has introduced a complex dual-regulator system to supervise digital finance. The Virtual Asset Service Providers (VASP) Act, 2025, and its subsequent 2026 Regulations, separate the supervision of money from speculative trading.

The Central Bank of Kenya (CBK) controls payment infrastructure, while the Capital Markets Authority (CMA) governs digital asset exchanges. The minimum paid-up capital requirements are steep, with stablecoin issuers facing a KES 300 million threshold and cryptocurrency exchanges regulated by the CMA requiring KES 100 million.

Existing crypto businesses face an existential transition deadline of November 4, 2026, to secure official authorization or shut down permanently. The regulatory authority is split horizontally based on the exact nature of the digital product.