The National Treasury Invites the Kenyan Public to Submit Views on the 2026 VASP Regulations
The National Treasury has invited public consultation on the Draft Virtual Asset Service Providers Regulations, 2026, marking a significant milestone in implementing the law.
For years, virtual assets in Kenya have operated without formal oversight, despite increasing mainstream adoption and innovation. However, growing international scrutiny, particularly Kenya’s placement on the Financial Action Task Force (FATF) grey list, and the need for consumer protection have made comprehensive regulation inevitable.
The Virtual Asset Service Providers (VASP) Act, 2025, which came into force on November 4, 2025, and formally recognizes virtual assets as digital representations of value that can be traded or used for investment. Following this, the National Treasury, in collaboration with a Multi-Agency Task Force and in consultation with the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA), developed the draft regulations along with a Regulatory Impact Statement. These measures aim to provide clear oversight of how they will govern cryptocurrency and digital asset businesses
Under the draft regulations, licensing is mandatory for any entity offering virtual asset services in or from Kenya. Applicants must be companies limited by shares and will be evaluated based on strict criteria, including strong governance and integrity, such as proper board structures and capable senior management; financial safeguards, like capital adequacy, segregation of client assets, and submission of audited financial statements, operational security, through robust cybersecurity and anti-money laundering (AML) measures, and compliance, by prohibiting anonymity-enhancing services such as mixers and tumblers to ensure transparency.
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 The Central Bank of Kenya (CBK) will regulate payment-focused cryptocurrency businesses, such as stablecoin providers and conversion services, whereas the Capital Markets Authority (CMA) will oversee trading platforms, brokers, and tokenization services.
The Kenyan digital asset industry has proactively organized itself to engage with these changes. The Virtual Asset Association of Kenya (VAAK), representing over 50 firms, was established to provide a unified voice during the regulatory rollout. VAAK has noted that several industry recommendations are reflected in the draft but emphasizes the importance of continued dialogue to develop a supportive and innovative framework.
The National Treasury is seeking public input to refine the regulations, inviting comments or memoranda from members of the public, investors, and developers by Friday, April 10, 2026. Submissions can be emailed to pstnt@treasury.go.ke and vasps@treasury.go.ke. Additionally, nationwide public forums will be held between March 30 and April 10, 2026.
