The Central Bank of Kenya (CBK) has introduced licensing rules requiring cryptocurrency businesses to secure approval before offering virtual asset services in the country.
Through a circular released on Sunday, November 15, the rules took effect after National Treasury gazetted the Virtual Asset Service Providers Regulations, 2026, on July 22, under Legal Notice No. 134.
These regulations operationalise the Virtual Asset Service Providers Act, 2025, which was gazetted on October 21 and commenced on November 4 that year.
The Act establishes a framework for licensing and supervising virtual asset service providers, assigning regulatory responsibility to CBK and Capital Markets Authority (CMA).
As per the notice, both regulators will license providers according to services listed in the Act’s First Schedule, with applications directed to the relevant authority.Anyone providing or planning to provide virtual asset services must, in this case, apply for the appropriate license using CMA’s regulator’s checklist.
The new regulations establish ten cryptocurrency business licenses, with the CBK overseeing three categories. These cover digital wallets and custody services, cryptocurrency payments and remittances, and stablecoin issuance.
The CBK will also license wallet providers that store cryptocurrencies such as Bitcoin and Ethereum for customers, payment processors handling crypto transactions and conversions, and stablecoin issuers producing digital currencies designed to maintain a steady value against currencies such as the U.S. dollar.
