Kenya is moving closer to formalizing oversight of its digital asset sector after completing public consultations on proposed rules for crypto firms.
On April 11, the National Treasury announced that it had concluded stakeholder submissions on the draft Virtual Asset Service Providers (VASP) regulations. This step advances the framework needed to implement the country’s 2025 law governing crypto-related businesses.
Kenya Drafts Stricter Rules for Crypto Firms
The rules will establish licensing requirements and supervisory standards for companies dealing in cryptocurrencies, tokenized assets, and stablecoins.
The proposed regime outlines entry thresholds for operators, including ownership suitability tests, capital requirements, and governance standards. It also establishes obligations related to risk management and anti-money laundering compliance.
The Kenyan authorities are also seeking to impose stricter consumer safeguards. This would include mandatory disclosures, transparent pricing, and protections for crypto client funds.
The framework introduces market conduct provisions aimed at curbing manipulation and insider activity, while requiring due diligence for asset listings and ongoing monitoring of trading activity. Firms would also be subject to periodic reporting, audits, and cybersecurity standards under a system combining on-site and off-site supervision.
The central bank and capital markets authorities are expected to share oversight of the crypto sector.
Kenya’s push to formalize oversight aligns with a broader global shift among regulators to define sectoral rules while preserving space for innovation.
The Treasury said the next phase will involve reviewing feedback and refining the draft before finalizing the regulations. The outcome is expected to shape how firms enter and operate in one of Africa’s more mature fintech markets.
The consultation process comes as digital asset use expands rapidly across Africa. According to Ripple, the continent faces high transaction costs, delays in cross-border transfers, and limited access to stable foreign currencies.
As a result, people on the continent have shown increased reliance on crypto-based tools for settlement and savings.
Due to this, Sub-Saharan Africa has emerged as one of the fastest-growing crypto markets, with transaction volumes rising sharply over the past year.
The post Kenya Moves Closer to Regulating Crypto Firms With VASP Framework appeared first on BeInCrypto.
Source: https://beincrypto.com/kenya-crypto-regulations-near-implementation/
