The Kenyan government has taken steps to regulate the country's growing cryptocurrency market. A draft regulatory framework for Virtual Asset Service Providers (VASPs) has been published by the National Treasury, addressing concerns from the Financial Action Task Force (FATF).
The new rules propose reserve requirements for stablecoin issuers, with at least 30% of funds to be held in local bank accounts and the remainder invested in low-risk liquid assets. This is aimed at reducing financial risks and attracting innovation.