Govt Announces New Licensing Rules Affecting Some Digital Businesses

by Maxwell Amunga on Sunday, 15 November 2026 - 5:06 pm

The Central Bank of Kenya (CBK) has introduced licensing rules requiring cryptocurrency businesses to secure approval before offering virtual asset services in the country.

Through a circular released on Sunday, November 15, the rules took effect after National Treasury gazetted the Virtual Asset Service Providers Regulations, 2026, on July 22, under Legal Notice No. 134.

These regulations operationalise the Virtual Asset Service Providers Act, 2025, which was gazetted on October 21 and commenced on November 4 that year.

The Act establishes a framework for licensing and supervising virtual asset service providers, assigning regulatory responsibility to CBK and Capital Markets Authority (CMA).

As per the notice, both regulators will license providers according to services listed in the Act’s First Schedule, with applications directed to the relevant authority.

Anyone providing or planning to provide virtual asset services must, in this case, apply for the appropriate license using CMA’s regulator’s checklist.

The new regulations establish ten cryptocurrency business licenses, with the CBK overseeing three categories. These cover digital wallets and custody services, cryptocurrency payments and remittances, and stablecoin issuance.

The CBK will also license wallet providers that store cryptocurrencies such as Bitcoin and Ethereum for customers, payment processors handling crypto transactions and conversions, and stablecoin issuers producing digital currencies designed to maintain a steady value against currencies such as the U.S. dollar.

CMA, on the other hand, will regulate seven categories, including cryptocurrency exchanges, brokers, investment advisers, asset managers, Initial Coin Offering providers, tokenisation businesses and token issuance platforms. These cover trading, investment management and digital tokens, which are electronic representations of money, property or other assets.

For cryptocurrency exchanges, wallet operators and transfer services, the regulations mean operating without the relevant licence is no longer permitted.

Businesses must identify which regulator oversees their services, then meet its licensing requirements before offering services or continuing operations in Kenya.

Customers should check licensing status rather than assume platforms are approved, since the regulations do not make cryptocurrency investments guaranteed or risk-free.

Separately, CMA initially warned Kenyans against 15 unlicensed investment platforms accused of unlawfully soliciting money, including cryptocurrency, forex and money market investment schemes.

CMA has urged affected investors to report to the nearest DCI office or submit transaction IDs and cryptocurrency wallet addresses through its whistleblower channels.

The authority has also advised Kenyans to verify investment firms through its official licensees portal before committing their money.