CBK, CMA Order Crypto Businesses to Apply for Licences Under New Regulations

CBK, CMA Order Crypto Businesses to Apply for Licences Under New Regulations

Cryptocurrency businesses operating in Kenya are now required to seek licences from the relevant financial regulators following the gazettement of new rules governing the country’s virtual asset sector.

The Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) announced on Friday, November 13, that the Virtual Asset Service Providers Regulations, 2026, had officially been gazetted.

The new framework establishes licensing and supervision requirements for businesses offering cryptocurrency and other virtual asset services, giving the two regulators formal oversight of the growing industry.

The announcement comes after the transition period provided for existing service providers expired on November 4, 2026.

CBK and CMA outline licensing requirements

Under the new regulations, cryptocurrency businesses must apply to the regulator responsible for overseeing the particular services they provide.

The allocation of responsibilities is outlined in the First Schedule of the Virtual Asset Service Providers Act, 2025.

This means businesses will not necessarily apply to the same regulator. Their licensing authority will depend on the nature of their operations and the category of virtual asset services they offer.

The CBK and CMA have urged affected businesses to review the licensing requirements and application checklists published on their respective websites.

The CBK also indicated that it would publish a list of approved virtual asset service providers once licences had been issued.

The framework is intended to establish a formal regulatory structure for cryptocurrency businesses while providing clear procedures for market entry and supervision.

Kenya completes cryptocurrency regulatory framework

The latest development follows earlier announcements by the two regulators in November 2025 that the National Treasury was preparing regulations to operationalise the Virtual Asset Service Providers Act, 2025.

The gazettement of the 2026 regulations marks a further step towards implementing the law and establishing how cryptocurrency businesses will be regulated.

The framework comes as digital asset transactions continue to attract significant activity in Kenya, making regulation an increasingly important issue for financial authorities.

Businesses operating in the sector will now need to align their operations with the licensing requirements set out by the relevant regulators.

Kenyans transfer KSh700 billion in cryptocurrency

The introduction of the licensing framework comes amid rising cryptocurrency activity in the country.

According to global cryptocurrency analytics firm Chainalysis, Kenyans transferred digital assets worth approximately KSh700 billion in the year to June 2026.

The figure represented an increase from the KSh506 billion recorded during the preceding year.

The growth highlights the expanding use of digital assets in Kenya and the importance of establishing clear rules for businesses facilitating cryptocurrency transactions.

The regulations are expected to provide a framework for supervising service providers, although their practical impact will depend on how licensing and compliance requirements are implemented.

Treasury considers new rules on unclaimed digital assets

Meanwhile, the National Treasury is considering another policy proposal that could change how dormant digital assets are handled in Kenya.

In a draft Unclaimed Financial Assets National Policy, the Treasury proposed expanding the categories of assets that can be surrendered to the Unclaimed Financial Assets Authority (UFAA).

The proposal includes cryptocurrencies and stablecoins that remain unclaimed or dormant for extended periods.

The Treasury argues that the existing framework does not adequately address the treatment of digital assets, creating a need to expand the definition of unclaimed financial property.

If adopted, the proposal would bring eligible unclaimed cryptocurrencies into the same broader framework as dormant bank accounts, shares, insurance benefits and other financial assets.

However, the policy remains a proposal and would require the relevant approval before taking effect.

What the new regulations mean for crypto businesses

The gazettement of the Virtual Asset Service Providers Regulations introduces a formal licensing requirement for businesses operating within Kenya’s virtual asset industry.

Companies offering cryptocurrency-related services will need to establish which regulator oversees their activities and follow the applicable licensing procedures.

The development also places greater responsibility on financial regulators to supervise the sector as digital asset transactions continue to grow.

For businesses and investors, the new framework marks an important stage in Kenya’s efforts to establish regulatory oversight of cryptocurrency activities while addressing emerging risks in the digital financial market.

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CBK, CMA Order Crypto Businesses to Apply for Licences Under New Regulations