Kenya has taken a significant step toward regulating its fast-growing digital asset market by introducing comprehensive rules governing cryptocurrency businesses. The new Virtual Asset Service Providers (VASP) Regulations, 2026, establish a licensing framework for companies dealing in digital assets and introduce stricter consumer protection and operational standards. These measures are expected to improve confidence in digital asset platforms while offering users better protection against financial misconduct. Stablecoin issuers face the highest minimum paid-up capital threshold at Sh300 million, while virtual asset exchanges must maintain Sh100 million. If implemented effectively, the framework could strengthen investor confidence, promote responsible innovation, and position Kenya as one of Africa’s leading markets for regulated virtual asset services