Strict Licensing and Oversight Requirements

Kenya’s cryptocurrency industry is reportedly raising concerns over draft regulations that would require firms to hold significant amounts of paid-up capital before obtaining operating licenses. Industry representatives say the proposed thresholds could push smaller startups out of the market and concentrate activity among a handful of well-funded players.

The draft Virtual Asset Service Providers (VASP) Regulations 2026, prepared by the National Treasury, outlines licensing requirements for exchanges, wallet providers, and stablecoin issuers. Under the proposal, stablecoin firms would need up to $3.86 million (500 million Kenyan shillings) in paid-up capital, while other service providers…