"The draft Virtual Asset Service Providers (VASP) Regulations 2026 outlines licensing requirements for exchanges, wallet providers, and stablecoin issuers, demanding significant paid-up capital."
"The Virtual Asset Association of Kenya warns that the capital demands, combined with insurance and compliance costs, risk excluding startups from the formal market."
"Kenyan authorities argue that the regulations are necessary to safeguard investors and bring order to a sector that has grown rapidly but remains largely unregulated."
"Stakeholders and the public have until April 10, 2026, to submit feedback on the draft regulations, which aim to balance innovation and investor protection."
Kenya's cryptocurrency industry faces challenges from draft regulations requiring significant paid-up capital for operating licenses. The proposed Virtual Asset Service Providers (VASP) Regulations 2026 demand up to $3.86 million for stablecoin firms, risking exclusion of smaller startups. The Virtual Asset Association of Kenya warns that these capital demands could push users to unregulated platforms, undermining consumer protection. The regulations aim to safeguard investors and regulate a rapidly growing sector, with feedback from stakeholders due by April 10, 2026.
Read at news.bitcoin.com
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