Regulatory AlertsKenya: crypto & digital assets regulation
RegulatedVASP licensing via CMA under 2025 Act; CBK governs banking interface
- Lead regulator
- Capital Markets Authority (CMA)
- Also involved
- CBK (banking interface/AML) · National Treasury (policy)
- Core law
- Virtual Asset Service Providers Act, 2025
- Entry capital
- —
- Approval timeline
- —
- Customer assets
- Licensed custodian only
- Data protection
- Data Protection Act · ODPC
- Sandbox
- —
Kenya has established a comprehensive licensing regime for Virtual Asset Service Providers (VASPs) under the Virtual Asset Service Providers Act, 2025, effective November 4, 2025. The Capital Markets Authority (CMA) is the primary licensing and supervisory authority, while the Central Bank of Kenya (CBK) oversees the banking interface and ensures compliance with prudential standards. This framework replaces previous warnings with a structured compliance pathway.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Exchange / trading platform | LicenceVASP Licence[1][2] Mandatory licensing under 2025 Act | — | — | CMA |
| Custody of client assets | LicenceVASP Licence[2] Included in VASP scope | — | — | CMA |
| Token issuance / public offering | LicenceVASP Licence[2] Subject to VASP framework | — | — | CMA |
| Broker-dealer / OTC desk | LicenceVASP Licence[2] Subject to VASP framework | — | — | CMA |
| Stablecoin issuance | LicenceVASP Licence[2] Subject to VASP framework | — | — | CMA |
| Crypto payments acceptance | LicenceVASP Licence[2] Subject to VASP framework | — | — | CMA |
| Mining / staking services | Uncertainverify with regulator Not explicitly defined in source | — | — | — |
| Advisory / portfolio management | Uncertainverify with regulator Not explicitly defined in source | — | — | — |
New — what changed recently
Market-entry checklist
- 1Apply for VASP Licence via CMASubmit application under the Virtual Asset Service Providers Act, 2025 to the Capital Markets Authority.
- 2Establish Banking RelationshipsNavigate CBK restrictions by ensuring compliance with AML/CFT standards for fiat on/off ramps.
- 3Implement AML/CFT FrameworkAdhere to strict operational and anti-money laundering requirements mandated by the 2025 Act.
- 4Register for Data ProtectionComply with the Data Protection Act and register with the Office of the Data Protection Commissioner.