Kenya is taking a decisive step towards shaping its digital asset future with the release of draft guidelines for the regulation of crypto firms and digital asset service providers.
The proposed regulations aim to bring clarity, structure, and accountability to the rapidly growing sector. Authorities want feedback from stakeholders before April 10, which gives them a limited window to respond.
The draft introduces strict licensing rules for all Virtual Asset Service Providers (VASPs). Firms must register and obtain approval before offering services, ensuring that only compliant players operate in the market.
Companies must also meet capital requirements to secure licenses, reducing the risk of sudden business failures. Regulators want firms to prove long-term sustainability before entering the market, building trust among investors and users.