The draft Virtual Asset Service Providers Regulations 2026 operationalize the VASP Act of 2025.
Objectives include promoting financial stability by imposing prudential standards, including capital and reserve requirements on VASPs, and providing legal certainty for VASPs, consumers, and regulators.
The licensing framework covers Virtual Asset Wallet Providers, Virtual Asset Payment Processors, and Virtual Asset Offering Providers dealing with stablecoin issuance.
Licensees must maintain capital and financial resources proportionate to their scale, risk, and complexity, including prescribed paid-up capital, proper accounting systems, financial reporting mechanisms, and insurance requirements.
Requirements for stablecoin issuance include information and documents that must accompany an application, as well as factors the regulatory authority will consider when assessing the application.
Safekeeping and management of customer assets includes requirements for licensees using distributed ledger platforms to ensure proper safeguarding arrangements.
Public participation on the draft VASP Regulations 2026 concluded on 10 April 2026. Regulations remain under parliamentary scrutiny as of July 2026.
Dual regulatory structure: Central Bank of Kenya oversees payment processors, wallet providers and stablecoin issuers; Capital Markets Authority supervises exchanges and tokenization platforms.