Kenya opens licensing for crypto firms as VASP rules take effect
- The Central Bank of Kenya and the Capital Markets Authority confirmed the gazetting of the VASP Regulations, 2026.
- The regulations provide a framework for licensing and supervising virtual asset service providers in Kenya.
- Companies operating without a license could face penalties of up to KES25 million, while individuals could be fined up to KES10 million or jailed for up to five years.
The introduction of the VASP Regulations is a significant step towards regulating the crypto industry in Kenya, which could enhance consumer protection and foster trust in virtual asset services. However, the penalties for non-compliance may deter some businesses from entering the market, potentially stifling innovation.
