Kenya has completed its regulatory framework for cryptocurrency and other digital asset businesses after publishing the Virtual Asset Service Providers (VASP) Regulations, 2026, paving the way for the licensing and supervision of exchanges, wallet providers, stablecoin issuers and other virtual asset companies operating in the country.
The regulations, published through Kenya Gazette Supplement No. 185 under Legal Notice No. 134, bring into force the operational provisions of the Virtual Asset Service Providers Act, which received presidential assent in October 2025. The new rules establish the legal requirements that digital asset businesses must meet before offering services to customers in Kenya.
The framework introduces a comprehensive licensing regime that places cryptocurrency firms under formal regulatory oversight, Brandspur Banking News Desk reports. It also extends to companies serving Kenyan users from outside the country, requiring them to obtain the necessary approvals if they operate within the Kenyan market.
Under the regulations, licensed firms must satisfy governance and minimum capital standards, implement anti-money laundering and counter-terrorism financing measures, strengthen cybersecurity systems, protect customer assets, and comply with ongoing reporting and consumer protection obligations set by the country’s regulators.
The move represents one of Kenya’s most significant regulatory developments for the digital asset industry, providing legal certainty for businesses while strengthening oversight of a sector that has experienced rapid growth across Africa. The framework is expected to improve investor confidence and encourage responsible innovation by establishing clear operating standards for virtual asset service providers.
Kenya joins a growing number of jurisdictions introducing dedicated rules for the cryptocurrency sector as governments seek to balance financial innovation with consumer protection, financial stability and measures to combat illicit financial activities. The new regulations are expected to shape how digital asset firms enter, expand and operate within the Kenyan market in the years ahead.
