Kenya finalises crypto licencing framework for exchanges, digital asset firms
Kenya is leveling up its digital asset game, finalizing new rules to license and oversee crypto exchanges and other digital asset firms. This move aims to boost investor confidence and formalize the booming crypto market in East Africa.
Kenya has gazetted the Virtual Asset Service Providers (VASP) Regulations, 2026, finalising the country’s legal framework for licencing and supervising cryptocurrency exchanges, wallet providers, stablecoin issuers, and other digital asset businesses. The regulations were published in Kenya Gazette Supplement No. 185 under Legal Notice No. 134 on Friday, completing implementation of the Virtual Asset Service Providers Act, which President William Ruto assented to in October 2025. The regulations mark the final step in Kenya’s effort to bring cryptocurrency businesses under formal regulatory oversight. They create, for the first time, a licencing framework that allows Kenya’s regulators to approve and supervise firms operating in the sector. Kenya is one of East Africa’s largest cryptocurrency markets, recording about $19 billion in crypto inflows between July 2024 and June 2025, according to blockchain analytics firm Chainalysis. It ranked second in the region by transaction value, behind Ethiopia.
