Kenya crypto licensing reforms

In late July 2026 Kenya’s National Treasury introduced a new set of Virtual Asset Service Provider (VASP) regulations that tightened licensing requirements. Operators must commence activities within 12 months, cannot transfer licences before three years of compliance, and must submit detailed audited financial statements, governance information, beneficial‑owner disclosures, business plans, cybersecurity policies and AML controls. The Treasury also reduced the paid‑up capital minimum for stable‑coin issuers by 40% to about $2.32 million and imposed strict reserve‑backing rules.

By early August 2026 the framework was finalized, adding a formal right of appeal for licence refusals, suspensions or revocations and expanding enforcement powers such as asset freezing and management intervention. The regulations differentiate licences by business model and set tailored capital, governance and compliance standards. Within weeks, several international and African crypto firms—including Binance, Yellow Card, Luno, VALR and Kotani Pay—announced plans to apply for licences, indicating early uptake of the new regime.

Overall, Kenya moved from drafting tighter crypto rules to implementing a comprehensive licensing regime that offers procedural safeguards and attracts global market participants.