NAIROBI, Aug 7 –Kenya has introduced new cryptocurrency regulations that give licensed crypto exchanges and other virtual asset companies the legal right to appeal regulatory decisions.
Under the final Virtual Asset Service Providers (VASP) Regulations, businesses such as crypto exchanges, wallet providers, token issuance platforms and stablecoin issuers can challenge decisions including licence refusals, suspensions, revocations and other regulatory actions.
According to the National Treasury, companies affected by decisions made under the regulations can file an appeal under Section 43 of the Virtual Asset Service Providers Act, 2025.
The new rules also give regulators wider powers. They can reject licence applications, suspend or cancel licences, impose administrative penalties, take over the management of a company and appoint statutory managers to oversee customer assets in certain cases.
The regulations also set out a legal process for freezing and seizing virtual assets linked to suspected financial crimes. With court approval, investigators can access hardware wallets, seed phrases and other devices needed during investigations.
At the same time, the rules require authorities to protect customers who are not involved in any suspected wrongdoing. Any freezing or seizure order must apply only to specific accounts or digital assets, not all customer assets held by a platform. Companies can also ask for clarification or request changes if an order affects customers who are not connected to the investigation.
The final regulations also introduce a formal appeals process that was not included in the draft rules released in March. While regulators still have broad enforcement powers, the updated framework gives licensed companies a clear legal process to challenge regulatory decisions.
