Kenya Issues Draft Crypto Rules With Tough Licensing and High Capital Barriers
The Kenyan government has published draft regulations aimed at cryptocurrency companies and digital asset service providers, introducing tougher licensing requirements and high capital barriers intended to bring the market into a formal regulatory framework. Authorities say the measures are designed to tighten oversight, curb illicit finance risks, and protect retail investors as crypto activity grows in the country.
While clearer rules could attract institutional participation and improve market integrity, the proposed capital thresholds and stricter compliance obligations may squeeze smaller startups and push some activity offshore or into informal channels. The draft will likely undergo consultation and further revision before becoming law, and industry participants will be watching closely for details on licensing timelines, reporting requirements, and enforcement mechanisms.