Kenya Moves to License Crypto Service Providers Under New Regulatory Framework

November 14, 2026 | By Semahegn Nigatu

Kenya has moved to operationalise a licensing framework for virtual asset service providers, requiring businesses offering cryptocurrency-related services to obtain approval from the country's central bank or capital markets regulator.

The Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) announced on November 13 that the Virtual Asset Service Providers Regulations, 2026, had been gazetted, completing the regulatory process needed to implement the Virtual Asset Service Providers Act, 2025.

The regulations were gazetted on July 22, 2026, in Kenya Gazette Supplement No. 185 under Legal Notice No. 134, by the Cabinet Secretary for the National Treasury, following advice from the two regulators.

Under the framework, the CBK and CMA will be responsible for licensing and supervising virtual asset service providers, with the relevant authority determined by the nature of services offered under the Act's First Schedule.

Any individual or company providing, or intending to provide, virtual asset services is required to apply for a licence from the relevant regulator. The authorities said detailed licensing checklists would be made available on their respective websites, while lists of licensed providers would also be published.

The regulations follow the passage of the Virtual Asset Service Providers Act in 2025. The legislation was gazetted on October 21 that year and commenced on November 4, establishing the legal basis for licensing and supervision of businesses operating in the virtual asset sector.

The completion of the regulations marks a shift from establishing the legislative framework to implementing regulatory oversight of the industry. It gives the two authorities the regulatory instruments to process licence applications and supervise businesses operating in the market.

The framework places Kenya's virtual asset industry under a formal licensing structure, with the CBK and CMA sharing regulatory responsibilities according to the services provided.

Source: FSX Business News