The National Treasury has unveiled draft Virtual Asset Service Providers (VASP) Regulations 2026 aimed at formally regulating Kenya's burgeoning cryptocurrency industry.

• These regulations propose licensing and strict supervision for crypto-related businesses to enhance consumer protection and combat financial crimes.
• The National Treasury is leading this initiative under the Virtual Asset Service Providers Act, 2025.
• Key requirements include physical office presence for local companies, background checks for directors, and strict reserve requirements for stablecoin issuers, with a proposed 0.05% transaction fee on token issuance platforms.