By Pascal Ndegwa - Reporter
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Kenya, November 03, 2026 - From today, crypto platforms that operate in Kenya without a proper licence face criminal charges. The one-year grace period given to these businesses is over.
The Virtual Asset Service Providers Act came into force on 4 November 2025. It gave existing crypto companies twelve months to get licensed by either the Capital Markets Authority or the Central Bank of Kenya. That window closed on 4 November 2026.
The law covers exchanges, digital wallets that hold customers’ money, brokers, and other services that help people buy, sell or store crypto. It applies to businesses based in Kenya and to foreign platforms that target Kenyan users. Simply holding or trading crypto for yourself remains legal. Running a platform that serves other people does not, unless the operator has a licence.
Regulators published the detailed rules in July this year. By the end of October, public lists still showed almost no approved platforms.
Anyone who continues without a licence can be fined up to 10 million shillings or jailed for up to five years. Companies face fines of up to 25 million shillings. Directors who knowingly allow the business to keep running can also be held responsible.
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Many ordinary Kenyans use these platforms to send money or try to grow small savings. Some small operators have served people in towns far from big banks. From today those platforms must either get licensed or stop. Banks may freeze accounts linked to unlicensed services, and customers could face delays or losses if a platform suddenly closes.
The change aims to protect users from scams and make sure crypto businesses follow proper rules against dirty money. It also brings Kenya closer to international standards on tracking digital money.
What happens next depends on how regulators respond. The first public warnings, frozen accounts or new licence announcements will show whether the new rules are enforced quickly. For now, the grace period is finished and the rules are in force.