Kenya’s government proposed strict new rules forcompanies offering digital asset services, demanding that some hold as much asSh500 million ($3.8 million) in capital. The measures are part of draftregulations under the Virtual Asset Service Providers (VASP) Act, 2025, whichaims to bring oversight to the fast‑growing crypto market.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)Stablecoin Issuers Face Steep Capital NeedsAccording to the National Treasury’s draft, stablecoinissuers will face the highest requirement at Sh500 million ($3.8 million), while investmentadvisors will need at least Sh2.5 million ($19,300). The rules also exclude capital raised through loans orinternal revaluations, requiring firms to use fully paid‑up fundsonly.The regulations emphasize that companies must maintainsufficient capital “commensurate with the scale, risk and complexity” of theiroperations. Regulators may also direct firms to raise capital further if theirrisk exposure increases.Firms will also pay license fees between Sh100,000 ($772)and Sh2 million ($15,400), depending on the service type. Crypto exchanges andpayment processors issuing stablecoins will pay the most.Keep reading: Kenya’s CMA Widens Regulatory Net With Robo-Advisory PermitsApplicants must submit detailed business plans showing theiractivities, technology, data protection, and anti‑money laundering measures, as wellas three‑ to five‑year financial projections.The draft follows the enactment of the VASP Act in November2025 and involves collaboration among the National Treasury, Central Bank ofKenya, and Capital Markets Authority, signaling the country’s firm stance oncryptocurrency oversight.Kenya’s Crypto Firms' Regulations Kenya’s proposed capital and licensing rules sit on top of the Virtual Asset Service Providers (VASP) Act, 2025, the country’s first comprehensive crypto law that pulls exchanges, wallet providers and stablecoin issuers into a formal regime overseen jointly by the Central Bank of Kenya and the Capital Markets Authority. Enacted in November 2025, the Act requires VASPs to be locally incorporated or registered, pass “fit and proper” tests and implement full AML/CFT controls aligned with FATF standards, including strict KYC, transaction monitoring and suspicious‑activity reporting to the Financial Reporting Centre, with criminal penalties and hefty fines for those operating without a license or breaching the rules.Meanwhile, Kenya’s markets watchdog recently moved to license robo-advisors and intermediary trading apps, widening its net over online investing as global FX brokers like Capital.com and XM shift into its onshore regime.This article was written by Jared Kirui at www.financemagnates.com.