CBK Requires Crypto Firms to Get Licences Before Offering Services

The Central Bank of Kenya has introduced licensing rules for cryptocurrency businesses. Firms must secure approval before offering virtual asset services in the country. The circular was released on Sunday, November 15, 2026.

The rules took effect after the National Treasury gazetted the Virtual Asset Service Providers Regulations, 2026. 

That happened on July 22 under Legal Notice No. 134. The regulations put into effect the Virtual Asset Service Providers Act, 2025. The Act was gazetted on October 21 and commenced on November 4.

The Act sets up a licensing and supervision system. It gives oversight duties to two regulators. 

The Central Bank of Kenya and the Capital Markets Authority will each license providers according to their services. Applicants must apply to the relevant authority.

Those already offering or planning to offer virtual asset services must apply for the right licence. The Capital Markets Authority has a checklist to guide applicants. Each application goes to the regulator that handles the service.

The regulations create ten crypto business licences. The Central Bank oversees three categories. 

These cover digital wallets and custody services, crypto payments and remittances, and stablecoin issuance. Wallet providers that store Bitcoin or Ethereum for customers fall under the central bank. 

So do payment processors that convert or handle crypto transactions. Stablecoin issuers, which aim to hold steady value against currencies such as the US dollar, are also covered.

The Capital Markets Authority regulates seven categories. These include crypto exchanges, brokers, investment advisers, and asset managers. 

They also cover Initial Coin Offering providers, tokenisation businesses, and token issuance platforms.

Operating without a licence is no longer allowed for exchanges, wallet operators, or transfer services. Businesses must first identify their regulator. 

They then need to meet that regulator's requirements before offering services or continuing to operate.

Customers have been urged to check whether a platform is licensed. The regulations do not guarantee that crypto investments are safe or risk-free.

The Capital Markets Authority has also warned Kenyans about 15 unlicensed investment platforms. 

These firms are accused of illegally soliciting money through crypto, forex, and money market schemes. Investors who lost money have been told to report to the nearest DCI office. 

They can also send transaction IDs and wallet addresses through the authority's whistleblower channels.

Kenyans are advised to verify any investment firm on the Capital Markets Authority's licensees portal before committing money.