Kenya publishes draft VASP Regulations for public consultation

The National Treasury published the Draft Virtual Asset Service Providers Regulations 2026 for public consultation on 17 March 2026, the first implementing instrument under the VASP Act 2025. Developed with the CBK and CMA through a multi-agency task force and accompanied by a Regulatory Impact Statement, the draft sets out licensing and authorisation processes for all VASP categories, from exchanges to custodial wallets to payment processors, and builds in FATF Recommendation 15 and Travel Rule requirements. The alignment with FATF standards is not decorative: Kenya sits on the FATF grey list, and a credible VASP regime supports the exit case. For operators the sequence matters more than the draft's detail. Consultation, final regulations, then licensing windows, all against the Act's fixed compliance deadline of 4 November 2026. The runway shortens with every step.