Kenya Makes Crypto Licences Mandatory as CBK and CMA Open VASP Checks

The Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) have introduced mandatory licensing for cryptocurrency and other virtual asset service providers operating in Kenya. In a public notice issued on Friday, November 13, 2026, the regulators said the Virtual Asset Service Providers (VASP) Regulations, 2026, had been gazetted on July 22, 2026.

The regulations require individuals and companies providing or intending to provide virtual asset services in Kenya to obtain licences from the relevant regulatory authority before commencing operations.

What the new Kenyan rules require

The VASP Regulations, 2026, operationalise the Virtual Asset Service Providers Act, 2025. The Act established the legal framework for licensing and supervising virtual asset businesses in Kenya. It designates the CBK and CMA as the country's regulatory authorities, with responsibilities determined by the categories of services provided by individual businesses under its First Schedule.

Businesses seeking to provide virtual asset services must apply to the relevant regulator based on the nature of their operations. The CBK and CMA have provided separate channels for licensing enquiries: CBK: [email protected] and CMA: [email protected]. Both regulators have published licensing checklists on their respective websites to guide applicants. They plan to publish lists of licensed virtual asset service providers to help the public identify authorised operators.

The regulators urged existing and prospective virtual asset businesses to review the applicable licensing requirements and obtain the necessary authorisation before operating in Kenya.

How Kenya got here

The VASP Act, 2025, was gazetted on October 21, 2025. The legislation commenced on November 4, 2025. In a joint notice dated November 18, 2025, the CBK and CMA announced the enactment of the law and said the National Treasury Cabinet Secretary would develop regulations to implement it.

The regulations were subsequently developed by the Cabinet Secretary on the advice of the two regulators. The regulators said: “Following the completion of the regulation development phase, the CBK and the CMA notify the public of the gazettement of the VASP Regulations, 2026.”

Nigeria's parallel capital rules

A similar regulatory tightening is taking place in Nigeria. The Central Bank of Nigeria (CBN) introduced a minimum paid-up capital of N15 billion for foreign currency-backed stablecoin issuers. Under Section 15.2 of the regulations, foreign currency-referenced stablecoins, classified as Class 2, must be issued through a Nigerian-incorporated entity with a valid CBN licence. Operators must also maintain a physical office, effective local management and adequate supervisory arrangements in the country.

The capital requirements vary by category. Class 2 foreign currency-backed stablecoin issuers must meet N15 billion. Class 1 naira-backed stablecoin issuers must meet N10 billion. Other non-security virtual asset service providers, including exchanges and wallet providers, must meet N1 billion.

The CBN also requires evidence of capital funding before final approval. Eligible capital must be held in cash in a designated CBN account or in Federal Government securities with an approved custodian. For operators already licensed by the Securities and Exchange Commission (SEC), the CBN's capital requirement is additional to the SEC's prescribed capital, and the same funds cannot be used to satisfy both requirements.

Foreign issuers must also establish locally incorporated entities responsible for regulatory compliance, provide the CBN access to their records and reserve arrangements, and maintain a resident Chief Compliance Officer alongside local customer and redemption operations.

For Nigerian crypto and stablecoin businesses, the Kenyan and Nigerian moves point to a clearer licensing era with higher capital and local presence requirements.