Kenya's Crypto Crackdown: New Sh500M Capital Rule Shakes Digital Currency Market
The government is proposing new regulations for Virtual Asset Service Providers (VASPs) in line with the VASP Act, 2025. A key requirement for these providers seeking to operate in the country will be a substantial capital of up to Sh500 million.Pelumi Ilesanmi • Across Africa • 3 months ago • 1 minute read •
The government is set to implement new regulations for Virtual Asset Service Providers (VASPs) within the country. These proposed regulations are being introduced as part of the broader effort to enforce the Virtual Asset Service Providers (VASP) Act, 2025, aiming to bring greater oversight and structure to the burgeoning virtual asset sector.
Under these forthcoming regulations, any virtual asset service provider intending to establish or operate within the nation will be required to demonstrate substantial financial backing. Specifically, such entities will need to hold capital amounting to up to Sh500 million, a significant prerequisite designed to ensure stability and accountability within the virtual asset ecosystem.
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