Altcoins News

Story: New Kenyan Regulations Demand Capital Buffers for Crypto Companies

By Julie Binoche

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Kenya unveils stringent new requirements for digital asset firms, mandating capital reserves of up to Sh500 million ($3.8 million).

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The proposed rules from the National Treasury impose the heaviest capital requirements on stablecoin issuers, setting a bar at Sh500 million.

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Crypto firms will face licensing fees ranging from Sh100,000 ($772) to Sh2 million ($15,400), with the highest fees levied on exchanges and payment processors handling stablecoins.

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These measures are part of broader efforts to regulate cryptocurrencies following the enactment of the VASP Act in November 2025.

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The rollout of these regulations comes as Kenya's market watchdog expands its oversight to include robo-advisors and trading apps.

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FAQ Analysts have drawn connections to Japan Bans Crypto Insider Trading amid evolving conditions.

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The VASP Act, 2025 mandates that digital asset firms in Kenya be locally registered, pass suitability tests, and adhere to strict anti-money laundering controls.

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Under the proposed regulations, stablecoin issuers in Kenya need to maintain a capital reserve of Sh500 million ($3.8 million).

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The Central Bank of Kenya, a key player in these regulatory changes, emphasizes that these capital requirements are crucial for safeguarding consumer interests and ensuring…

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On April 10, 2026, the Capital Markets Authority issued a statement supporting the new framework, highlighting its role in fostering a secure environment for investors.

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Despite the stringent requirements, some industry stakeholders express concerns about their potential impact on smaller firms.

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As the deadline for public consultation approaches, stakeholders are urged to provide feedback by the end of April 2026.

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The Kenyan Parliament is anticipated to discuss the proposed regulations in a session scheduled for May 2026.

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In a recent interview, John Maina, the head of Kenya's Blockchain Association, expressed optimism that the dialogue with regulators would lead to adjustments that favor both…

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Meanwhile, the Central Bank of Kenya has reiterated its commitment to working closely with industry stakeholders to iron out any contentious issues.

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