meta_id 2983812

On 2026, Kenya's Cabinet Secretary to the National Treasury and Economic Planning established comprehensive regulations governing virtual asset service providers under the Virtual Asset Service Providers Act (No. 20 of 2025). The Virtual Asset Service Providers Regulations, 2026 provide a complete regulatory framework for entities offering virtual asset services in or from Kenya. The regulations establish licensing requirements for virtual asset service providers, including wallet providers, exchanges, payment processors, brokers, investment advisers, asset managers, and offering providers. Applicants must demonstrate fit and proper criteria, maintain minimum capital requirements ranging from KES 2.5 million to KES 500 million depending on activity type, and comply with anti-money laundering and counter-terrorism financing obligations. Key provisions address ongoing operational requirements including cybersecurity measures, consumer asset safeguarding, market conduct standards, and transaction reporting. The regulations establish specific requirements for stablecoin issuers, including reserve asset backing, redemption rights, and custody arrangements. Initial coin offerings and tokenized real-world assets are subject to white paper disclosure requirements and trading platform approval. The regulations establish a Coordination Committee comprising representatives from the National Treasury, Central Bank of Kenya, Capital Markets Authority, Financial Reporting Centre, and other relevant agencies to coordinate supervisory activities. Enforcement provisions include administrative penalties ranging from KES 3 million to KES 10 million for various contraventions, with criminal penalties including imprisonment for serious market conduct offences such as insider trading and market manipulation. The regulations apply to all persons offering virtual asset services in or from Kenya, including those deriving economic benefit from Kenya regardless of physical presence.