NAIROBI, July 27 – Kenya has completed its legal framework for regulating cryptocurrency businesses after publishing the Virtual Asset Service Providers (VASP) Regulations, 2026, paving the way for the licensing and supervision of digital asset companies.
The regulations, published in Kenya Gazette Supplement No. 185 under Legal Notice No. 134, complete the implementation of the Virtual Asset Service Providers Act, which President William Ruto signed into law in October 2025.
With the new rules in place, cryptocurrency exchanges, wallet providers, stablecoin issuers and other virtual asset firms can now apply for licences to operate under a formal regulatory framework.
Kenya is one of East Africa’s largest cryptocurrency markets. According to blockchain analytics firm Chainalysis, the country recorded about $19 billion in crypto inflows between July 2024 and June 2025, ranking second in the region by transaction value after Ethiopia.
Under the regulations, firms serving customers in Kenya, including those without a physical presence in the country, must obtain licences, meet governance and capital requirements, strengthen anti-money laundering and cybersecurity measures, protect customer assets and comply with ongoing reporting obligations.
The framework also introduces rules covering stablecoins, digital wallets, tokenised assets, initial coin offerings, advertising, market conduct and enforcement.
The regulations follow a four-month public consultation that began in March, during which industry players raised concerns that some proposed capital and compliance requirements could make it harder for smaller firms to operate. Government officials continued discussions with stakeholders before finalising the rules.
Regulatory oversight will be shared between the Central Bank of Kenya and the Capital Markets Authority. The central bank will supervise virtual asset-to-fiat conversion services and stablecoin issuers, while the Capital Markets Authority will oversee exchanges, token issuance platforms, initial coin offerings and tokenisation activities.
With the regulations now in force, crypto businesses can begin seeking approval to operate under Kenya’s new licensing regime.
