Kenya Moves to Regulate Crypto Industry with Strong New VASP Rules
Kenya is taking decisive steps to bring structure to its virtual asset market. The National Treasury has issued a Regulatory Impact Statement (RIS) for proposed Virtual Asset Service Provider (VASP) regulations set to take effect in 2026. This framework aims to balance innovation with consumer protection and financial stability in the digital asset space.
The regulations will introduce mandatory licensing for crypto businesses operating in Kenya. Firms dealing with assets like BTC, ETH, or XRP will face stringent requirements including financial reporting standards, cybersecurity protocols, and anti-money laundering controls. The move mirrors global trends as nations grapple with crypto's rapid growth.
Exchanges such as Binance, Coinbase, and Bybit operating in Kenya will need to comply with the new regime. The government specifically cites the need to curb financial crimes while fostering responsible development of digital assets including stablecoins like DAI and memecoins like DOGE and SHIB.