Players in Kenya’s fast-growing virtual assets sector are lobbying for changes to the draft Virtual Asset Service Providers (VASP) Regulations, warning that high capital thresholds, transaction fees and compliance demands could stifle innovation and push startups to more favourable regional jurisdictions.
The regulations are intended to operationalise the VASP Act, enacted last year, which places crypto firms under the joint oversight of the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA).
