Kenya’s cryptocurrency businesses must obtain licences from the Central Bank of Kenya (CBK) or the Capital Markets Authority (CMA) under new regulations that formalise government oversight of the country’s virtual asset industry.
The two regulators said on Friday that the Virtual Asset Service Providers (VASP) Regulations, 2026, had been gazetted, completing the regulatory framework established by the Virtual Asset Service Providers Act, 2025.
The regulations were published on July 22 in Kenya Gazette Supplement No. 185 under Legal Notice No. 134, according to a public notice issued by the regulators. Their announcement comes after the transition period for existing providers ended on November 4.
“Following the completion of the regulation development phase, the CBK and the CMA notify the public of the gazettement of the VASP Regulations, 2026,” the regulators said.
Under the framework, companies and individuals providing, or intending to provide, virtual asset services in Kenya must apply for authorisation from the regulator responsible for their category of business.
“Accordingly, any person(s) providing or intending to provide virtual asset services are required to apply for a licence from the relevant regulatory authority pursuant to the Act,” the notice stated.
The CBK and CMA will divide supervisory responsibilities according to the services offered, as specified in the First Schedule of the 2025 Act. Businesses will therefore need to establish which regulator oversees their activities before submitting applications.
The regulators said licensing requirements and application checklists were available on their respective websites. They also said they would publish lists of approved providers once licences had been issued, giving consumers and investors a way to identify authorised businesses.
The framework introduces formal licensing and supervision requirements for an industry that has attracted growing interest from investors, financial technology companies and consumers using digital assets for payments, investment and cross-border transfers.
Kenya recorded cryptocurrency transactions worth about 700 billion shillings ($5.4 billion) in the year to June 2026, up from 506 billion shillings in the preceding year, according to data from blockchain analytics firm Chainalysis. The figures highlight the scale of activity regulators are seeking to bring under formal oversight.
The legislation was gazetted on October 21, 2025, and came into force on November 4 that year. In a joint notice issued on November 18, 2025, the CBK and CMA said the National Treasury would develop regulations to operationalise the law.
The regulations establish the procedures through which virtual asset service providers will be licensed and supervised, giving effect to the statutory framework.
The CBK and CMA have provided separate channels for businesses seeking guidance on applications. Applicants can contact the central bank at vaspapplications@centralbank.go.ke or the CMA at virtualassets@cma.or.ke.
The licensing requirements come as the government considers extending its unclaimed financial assets framework to cover dormant cryptocurrencies and stablecoins.
In a draft Unclaimed Financial Assets National Policy, the National Treasury proposed expanding the definition of assets that must be surrendered to the Unclaimed Financial Assets Authority (UFAA), arguing that existing rules do not adequately address digital assets.
If adopted, the proposal would bring unclaimed cryptocurrencies within a framework that already covers dormant bank accounts, shares, insurance benefits and other financial assets.
The proposal remains a policy consideration and is separate from the licensing regulations announced by the CBK and CMA.
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Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
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