Regulatory Alerts2026-07-22
Added · Updated
The Virtual Asset Service Providers Regulations 2026
These Regulations establish the licensing, authorization, and ongoing operational requirements for virtual asset service providers operating in Kenya. They mandate specific capital and liquidity thresholds, detailed business plans, and fit-and-proper assessments for applicants, while imposing strict obligations on consumer asset safeguarding, cybersecurity, and market conduct. The framework specifically regulates initial coin offerings, tokenization of real-world assets, and stablecoin issuance, including reserve asset custody and prohibitions on granting interest. Enforcement mechanisms include administrative and criminal sanctions, freezing and seizure orders, and provisions for statutory management upon license revocation.