This page may contain stale information. Last updated: 2026-07-05

Definition

VASP (Virtual Asset Service Provider) regulation governs licensing, capital, custody, and operational requirements for entities offering crypto exchange, wallet, payment, stablecoin issuance, and tokenization services.

Kenya VASP Act 2025 / Regulations 2026

Kenya’s draft VASP Regulations 2026 operationalize the VASP Act 2025:

RequirementDetail
Stablecoin issuer capitalKSh500M minimum
Exchange/wallet capitalKSh150M
Tokenization/ICO capitalKSh200M
Local reserve rule≥30% of stablecoin funds in Kenyan commercial banks (contested)
Foreign issuersMust obtain compliance certification; locally incorporated entities eligible for license

30% local bank reserve rule faces industry opposition and parliamentary skepticism — foreign-issued stablecoins may face regulatory duplication with home jurisdictions.

Global Context

VASP frameworks align with FATF travel rule expectations while diverging on reserve localization (compare EU mica reserve rules vs Kenya’s proposed local bank anchor).

Sources