Kenya advances crypto regulation through VASP roundtable
Business
By
Graham Kajilwa
| Mar 31, 2026
Officials and industry players meet to refine virtual asset regulations under Kenya’s VASP framework. [File Courtesy]
Kenya is nearing full regulation of its virtual asset sector as authorities and industry players work to finalise rules under the Virtual Asset Service Providers framework, following the VASP Act, 2025, which took effect late last year.
A meeting between regulatory bodies, among them the Central Bank of Kenya (CBK) and other key industry players concluded that there was a need to refine the VASP Regulations draft.
Other priority areas for collaboration also discussed during the meeting included the development of clear operational guidelines for market participants, enhanced coordination among regulatory bodies and continued stakeholder consultations to ensure inclusive policy development.
The roundtable, hosted by the Office of the Special Envoy on Technology in collaboration with the Virtual Assets Chamber of Commerce, brought together senior officials from the National Treasury, the Central Bank of Kenya, and the Capital Markets Authority, alongside leading domestic and international virtual asset service providers and financial institutions.
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The dialogue focused on translating the VASP Act into a practical, forward-looking regulatory framework that supports innovation while safeguarding market integrity and consumer protection.
“This roundtable marks an important milestone in Kenya’s journey toward building a transparent, secure, and innovation-friendly virtual asset ecosystem. The collaborative approach demonstrated today will be critical in ensuring effective implementation of the VASP Act and positioning Kenya as a leader in digital finance,” said Philip Thigo, a representative from the Office of the Special Envoy on Technology.
Among the issues discussed are regulatory clarity and competitiveness, licensing and supervision, market development and the advent of new technologies such as Artificial Intelligence.
There was emphasis on the importance of a regulatory approach that positions Kenya as globally compatible and attractive to investment, while maintaining high standards of oversight.
Similarly, there was broad alignment on prioritising the licensing and supervision of VASPs as primary market intermediaries, with clear standards for token listing, disclosure, and risk management.
Players called for balanced policies on reserve requirements, licensing structures, reciprocity frameworks, and levy design to ensure both market stability and growth.
The challenge of new technologies also featured as participants underscored the importance of future-proofing regulations to accommodate emerging trends, including AI-enabled commerce and evolving financial technologies.