The Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) have introduced mandatory licensing requirements for cryptocurrency businesses and other virtual asset service providers operating in the country
In a joint public notice issued on Friday, November 13, 2026, the regulators confirmed that the Virtual Asset Service Providers (VASP) Regulations, 2026, were officially gazetted on July 22, 2026. Under the new framework, individuals and businesses providing, or planning to provide, virtual asset services in Kenya must obtain the appropriate regulatory licence before commencing operations.
New Regulations Strengthen Kenya’s Crypto Oversight
The regulations provide the implementation framework for the Virtual Asset Service Providers Act, 2025, which established the legal foundation for licensing, regulating and supervising virtual asset businesses in Kenya.
Under the Act, the CBK and CMA are designated as the country’s primary regulatory authorities. Their respective responsibilities depend on the nature and category of virtual asset services offered by each business, as outlined in the legislation’s First Schedule.
The regulatory process has progressed through several key stages. The VASP Act was gazetted on October 21, 2025, and officially came into force on November 4, 2025. Subsequently, on November 18, 2025, the CBK and CMA issued a joint notice confirming the enactment of the law and indicating that the National Treasury Cabinet Secretary would develop the necessary regulations in consultation with both authorities.
Following the completion of this process, the regulators confirmed the gazettement of the 2026 regulations, marking another significant step towards establishing a structured regulatory environment for Kenya’s virtual asset industry.
Licensing Process and Requirements for Crypto Businesses
Under the new framework, businesses seeking to offer virtual asset services in Kenya must apply to the appropriate regulator based on the nature of their operations.
For licensing enquiries, applicants can contact the relevant authorities through the following channels:
– Central Bank of Kenya (CBK): vaspapplications@centralbank.go.ke
– Capital Markets Authority (CMA): virtualassets@cma.or.ke
Both institutions have also made licensing checklists available on their official websites to help prospective applicants understand the documentation and regulatory conditions required for approval.
To promote transparency and protect consumers, the regulators have announced plans to publish official lists of licensed virtual asset service providers. This will enable members of the public to distinguish authorised operators from businesses offering similar services without the necessary approval.
Existing and prospective operators have therefore been encouraged to familiarise themselves with the new requirements and secure the appropriate licences before conducting virtual asset-related activities in Kenya.
Nigeria Also Tightens Capital Requirements for Stablecoin Issuers
Meanwhile, Nigeria is taking similar steps to strengthen oversight of its virtual asset industry, particularly in the stablecoin market.
According to a report by Nairametrics, the Central Bank of Nigeria (CBN) has introduced a minimum paid-up capital requirement of ₦15 billion for issuers of foreign currency-backed stablecoins.
Under Section 15.2 of the regulatory framework, foreign currency-referenced stablecoins, classified as Class 2, must be issued through a company incorporated in Nigeria and holding a valid CBN licence.
Operators are also required to maintain a physical presence in the country, establish effective local management structures and put appropriate supervisory arrangements in place.
The minimum capital requirements vary according to the category of virtual asset business:
– Class 2: Foreign currency-backed stablecoin issuers – ₦15 billion.
– Class 1: Naira-backed stablecoin issuers – ₦10 billion.
– Other non-security virtual asset service providers: Including cryptocurrency exchanges and wallet providers – ₦1 billion.
The CBN further requires applicants to provide evidence of their capital funding before receiving final regulatory approval. Qualifying capital must be maintained in cash in a designated CBN account or invested in Federal Government securities through an approved custodian.
For businesses already licensed by the Securities and Exchange Commission (SEC), the CBN’s capital requirement applies separately and is additional to the capital prescribed by the SEC. Consequently, the same funds cannot be used to meet both regulatory obligations.
Foreign stablecoin issuers are also expected to establish locally incorporated entities responsible for regulatory compliance. These entities must provide the CBN with access to relevant records and reserve arrangements, appoint a resident Chief Compliance Officer, and maintain local customer service and redemption operations.
Overall, these developments reflect a growing regulatory focus on accountability, consumer protection and financial stability within the virtual asset industry. As Kenya and Nigeria strengthen their respective frameworks, cryptocurrency and stablecoin businesses will face clearer licensing obligations, higher compliance expectations and greater regulatory scrutiny.
Credit: Nairametrics
Discover more from Ayobami Blog
Subscribe to get the latest posts sent to your email.
