Regulator: Central Bank of Kenya (CBK), Capital Markets Authority (CMA)
The Virtual Asset Service Providers Act, 2025 (No. 20 of 2025) is Kenya’s first comprehensive live framework for virtual assets and stablecoins, effective since November 2025. It establishes a dual-regulatory model with the Central Bank of Kenya licensing and supervising stablecoin issuers and payment-related VASPs, while the Capital Markets Authority oversees exchanges and trading. The Act mandates licensing for stablecoin issuance, imposes general obligations on capital, governance, AML/CFT, and customer asset protection, and delegates detailed rules on reserves, redemption, and disclosures to subsidiary regulations currently under development and consultation in 2026.
Applicable Laws:
Virtual Asset Service Providers Act, 2025 (No. 20 of 2025) - https://new.kenyalaw.org/akn/ke/act/2025/20/eng@2025-11-04
Draft Virtual Asset Service Providers Regulations, 2026 - https://www.treasury.go.ke/sites/default/files/Notices/Draft%20Virtual%20Asset%20Service%20Providers%20Regulations%2C%202026-%20Clean%20copy.pdf
