Kenya seeks public comment on draft VASP rules covering licensing and stablecoin backing

Kenya’s National Treasury has published draft operational rules for Virtual Asset Service Providers (VASPs) under the VASP Act, which took effect in November 2025. These draft regulations, open for public comment until April 10, stem from a multi-agency task force formed after Kenya was grey-listed by the FATF due to AML/CTF deficiencies. Key provisions mandate that stablecoin issuers must hold at least 30% of received funds in segregated accounts at Kenyan commercial banks, with the rest in secure, low-risk, high-quality liquid assets like cash or government securities with short maturities. The rules also introduce transaction-based fees, including a 0.05% fee for token issuance platforms and a 0.5% levy on successful initial virtual asset offerings. Furthermore, the draft expands licensing eligibility to limited liability partnerships, shortens license validity to 12 months from issuance, broadens the definition of a virtual asset, and requires all VASPs to operate a bank account in Kenya and undergo biennial system audits.

(Source：The Block)