Kenya's Virtual Asset Regulation Hinges on Global Cooperation

The rise of virtual assets has transformed securities enforcement into a transnational enterprise, making international cooperation essential for effective regulation. Kenya's Virtual Asset Service Providers Act, enacted in October 2025, established its first comprehensive legal framework for VASPs and brought its regulatory architecture closer to international standards.

The Act adopts a dual regulatory model, with the Central Bank of Kenya overseeing payment and stablecoin activities and the Capital Markets Authority supervising investment and trading-related virtual asset services. The Enhanced Memorandum of Understanding (EMMoU) introduced by IOSCO provides a stronger framework for cross-border information sharing and regulatory cooperation among securities regulators.

The EMMoU expands regulators' access to critical cross-border information, including beneficial ownership data, banking and transaction records, internet subscriber data, audit work papers, and witness evidence. Kenya's accession to the EMMoU on May 14, 2025, marked a significant milestone, signalling commitment to international regulatory standards in an era of increasingly transnational virtual asset activity.