Treasury Cracks Down on Crypto Licensing Trade With Tough New Rules

The National Treasury has tightened regulatory oversight of cryptocurrency in Kenya by introducing strict conditions that prevent firms from selling or trading their virtual asset licences until they have operated for at least three years.

Treasury Cabinet Secretary John Mbadi has released the Virtual Asset Service Providers (VASPs) Regulations, 2026, which introduce new safeguards to curb speculative trading in cryptocurrency licences while ensuring that only genuine operators enter the industry.

Under the virtual asset licensing rules, licence holders must commence providing virtual asset services within 12 months of receiving their licences. Failure to do so may result in the firms failing to meet the licensing requirements.

“Upon grant of a licence under these rules, a licensee shall commence its virtual asset business within twelve months of the date of grant of the licence,” the regulations state

The Treasury also froze any immediate transfer of licenses.

Virtual Asset Regulations Mandate 36 months of Operation before Permit Transfer.

Applicants must seek approval from the relevant regulator and meet all eligibility requirements before transferring or assigning a permit.

“An application shall only be considered if the licensee has commenced virtual asset business… and held the licence for a minimum period of 36 months from the date of commencement of business,” the regulations provide.

The new framework is part of the implementation of the Virtual Asset Service Providers Act, 2025, which came into force in November 2025.

The regulations will place the sector under the oversight of the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA), with both institutions responsible for licensing and monitoring cryptocurrency exchanges, wallet providers, stablecoin issuers, and other entities involved in virtual assets.

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Crypto Licensing Fee

The rules and regulations state that the CBK and CMA must authorize or reject license applications within 30 days upon receipt of all necessary documentation and with all necessary documents.

Due diligence is conducted.

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Licence fees have likewise been introduced in the new dispensation.

Cryptocurrency exchanges will pay a licensing fee of Ksh 1 million at first instance, while Ksh 500,000 per annum renewal fee or 0.5 percent of gross revenue.

The Treasury has also permitted companies to have one license for various virtual asset business activities if each particular type of business profile can be differentiated or the businesses use the same infrastructure.

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