Kenya Tightens Crypto Licences, Cuts Stablecoin Capital Requirement to $2.32 M

Kenya's National Treasury has issued new Virtual Asset Service Provider (VASP) regulations that reshape the country's crypto licensing framework. Licence holders must begin operations within 12 months of approval and cannot transfer licences until they have operated for at least three years and complied with all conditions. The application process now demands audited financial statements, governance details, beneficial‑owner disclosures, business plans, cybersecurity policies and anti‑money‑laundering controls, with extra scrutiny for foreign‑owned applicants.

In a related move, the Treasury lowered the paid‑up capital minimum for stablecoin issuers by 40% to roughly $2.32 million (about 300 million Kenyan shillings). The Central Bank of Kenya retains broad oversight, requiring a 1‑to‑1 reserve backing, 2‑day redemption windows and strict reserve allocations – at least 30% in segregated trust accounts at local banks and the remainder in eligible domestic assets. Fiat‑backed stablecoins must hold reserves in the same currency as their peg. Fees for licences and applications have also been set, with issuers paying higher amounts than wallet providers. Kenya currently ranks fifth globally in crypto adoption, according to Bybit’s 2025 World Crypto Ranking.