Kenya National Treasury: VASP Regulations Draft Unveiled for Formal Crypto Industry Framework

• The National Treasury in Kenya has officially gazetted the VASP Regulations, 2026, to formalize the country's crypto and digital asset industry.
• The regulations aim to provide a clear framework for VASPs in Kenya, ensuring compliance with international standards and best practices.
• The public comment period on the draft regulations concluded on April 10, 2026, and the final regulations were gazetted on July 22, 2026.

The release of the regulations comes as the Kenyan government seeks to establish a robust regulatory environment for digital assets.

The National Treasury in Kenya has officially gazetted regulations for Virtual Asset Service Providers (VASPs), marking a significant step towards formalizing the country's crypto and digital asset industry. The VASP Regulations, 2026, were developed by a Multi-Agency Task Force in collaboration with various stakeholders. According to sources, the regulations aim to provide a clear framework for the operation of VASPs in Kenya, ensuring compliance with international standards and best practices.

The release of the regulations comes as the Kenyan government seeks to establish a robust regulatory environment for digital assets. The move is seen as a crucial step towards promoting transparency, stability, and investor confidence in the sector.

The VASP Regulations, 2026, which operationalize the Virtual Asset Service Providers Act, 2025, are built on the principles of anti-money laundering (AML) and combating the financing of terrorism (CFT). The regulations draw from international best practices, including those set by the Financial Action Task Force (FATF), to ensure that Kenya's regulatory framework aligns with global standards. The regulations also acknowledge the importance of innovation in the digital asset sector, while emphasizing the need for robust risk management and compliance measures.

The Multi-Agency Task Force responsible for developing the regulations comprised representatives from various government agencies, including the National Treasury, the Central Bank of Kenya, and the Capital Markets Authority. The Financial Reporting Centre (FRC) serves as Kenya's Financial Intelligence Unit. The task force engaged with stakeholders from the private sector to ensure that the regulations are practical and effective.

The VASP Regulations, 2026, have significant implications for the development of Kenya's digital asset industry. As the country seeks to establish itself as a hub for crypto and fintech innovation, the regulations will shape the regulatory framework for VASPs in Kenya. The public comment period on the draft regulations concluded on April 10, 2026, and the final regulations were gazetted on July 22, 2026.

The success of the regulations will depend on their ability to strike a balance between promoting innovation and ensuring robust risk management and compliance measures. If implemented effectively, the regulations could unlock significant economic benefits for Kenya, including job creation, increased investment, and improved financial inclusion.

Lawyers and compliance officers should watch for the upcoming deadline to comment on these draft regulations, which will shape the regulatory framework for virtual asset service providers in Kenya.

Source: Original reporting via Business Daily Africa