Kenya has gazetted the Virtual Asset Service Providers (VASP) Regulations, 2026, completing the country’s legal framework for licensing and supervising cryptocurrency exchanges, wallet providers, stablecoin issuers, and other digital asset businesses.

The regulations were published on Friday in Kenya Gazette Supplement No. 185 under Legal Notice No. 134. Their publication completes the implementation of the Virtual Asset Service Providers Act, which President William Ruto assented to in October 2025, after Kenya’s parliament passed the crypto asset law.

The rules mark the final step in Kenya’s effort to place cryptocurrency businesses under formal regulatory oversight. For the first time, they establish a licensing framework that enables Kenyan regulators to approve and supervise companies operating in the sector, replacing an environment in which digital asset activity had grown without a dedicated licensing regime.

Kenya is one of East Africa’s largest cryptocurrency markets. The country recorded about $19 billion in crypto inflows between July 2024 and June 2025, according to blockchain analytics firm Chainalysis. By transaction value, Kenya ranked second in the region, behind Ethiopia. That scale makes the licensing regime a significant test of how African markets with high crypto usage bring offshore platforms, local exchanges, and consumer-facing wallet services into formal supervision.

The regulations require firms serving Kenyan customers to obtain licences, including companies that do not have a physical presence in the country. They must also meet governance and capital requirements, implement anti-money laundering and cybersecurity controls, safeguard customer assets, and comply with ongoing reporting and consumer protection obligations. The requirement is the most consequential provision for virtual asset service providers operating in, or from, Kenya.

The framework follows a four-month public consultation process launched in March, when the National Treasury invited feedback from industry participants, consumers, and other stakeholders. During the consultation, crypto firms argued that some proposed capital and compliance requirements could price smaller operators out of the regulated market. Government officials continued consultations with crypto companies before finalising the regulations.

The rules also cover stablecoins, initial coin offerings, tokenised real-world assets, digital wallets, advertising, market conduct, and enforcement. They apply to foreign providers that actively target Kenyan customers or derive economic benefit from the country, even if they have no physical presence in Kenya.

Licensed firms must maintain governance frameworks, conduct customer due diligence, keep transaction records for at least seven years, submit regular regulatory reports, and implement cybersecurity and business continuity measures. These obligations put compliance, custody standards, and operational resilience at the centre of market access for firms that want to keep serving Kenyan users.

Regulatory oversight will be divided between Kenya’s financial regulators. The Central Bank of Kenya (CBK) will supervise virtual asset-to-fiat conversion services and stablecoin issuers. The Capital Markets Authority (CMA) will regulate exchanges, token issuance platforms, initial coin offerings, and tokenisation activities under the VASP Act and its accompanying regulations.

The CBK had already started preparing for the new regime in April, when it advertised vacancies for roles covering licensing, product approval, and compliance for virtual asset service providers. With the regulations now gazetted, crypto firms can begin applying for approval to operate under Kenya’s new regulatory framework, while implementation will show how regulators handle licensing, enforcement, and cross-border providers targeting Kenyan customers.