Overview
- Parliament approved the Virtual Asset Service Providers Bill last week and forwarded it to President William Ruto, so the framework is not yet in force.
- The model assigns the Central Bank of Kenya to license stablecoin and virtual-asset issuers while the Capital Markets Authority licenses exchanges, replacing an earlier plan for a standalone regulator.
- Licensed providers must segregate client assets, obtain insurance, maintain Kenyan bank accounts, implement conflict-of-interest controls, keep detailed records, and meet AML/CFT obligations.
- Subsidiary regulations will set prudential standards, disclosure templates, IT-audit scopes, and transition measures, with banking access for regulated firms still an open question.
- Lawmakers say legal clarity is meant to attract investment from major platforms after prior engagements, and a separate tax shift now levies a 10% excise on platform fees instead of a 3% digital asset tax.