Binance, Luno, Yellow Card, others seek Kenyan crypto licences under new rules

Edline Murungi, Yellow Card's Group Head of Policy and Senior Legal Counsel, is already preparing to submit her company's application for licences covering exchange platform and payment processing activities in Kenya. This move, however, is not just a tactical manoeuvre, it's a reflection of the rapidly growing crypto market in Kenya, where between July 2024 and June 2025, the country recorded about $19 billion in crypto inflows. This growth, nearly twofold from the previous 12 months, underscores the increasing demand for a clear regulatory framework that would allow both local and international crypto firms to operate without fear of uncertainty.

Kenya's new Virtual Asset Service Provider (VASP) framework, gazetted on July 24, represents a significant shift for the country's digital asset industry, which has long operated in a state of uncertainty. This regulatory shift is a response to the growing need for oversight and protection in a market that is increasingly attractive to both consumers and investors. The new framework places exchanges, wallet providers, payment processors, and other digital asset firms under the formal oversight of the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK). This move puts Kenya alongside South Africa, Mauritius, and Botswana as one of the few African countries with a dedicated crypto licencing regime.

To secure a licence, crypto firms in Kenya will need to meet paid-up capital requirements, with the highest threshold at KES 300 million ($2.3 million) for stablecoin issuers. This sets the compliance bar high for firms seeking to operate in Kenya's regulated crypto market. For many, this could be a barrier to entry, but for others, it presents an opportunity to establish a strong presence in one of Africa's fastest-growing digital asset markets.

Yellow Card, a stablecoin infrastructure company operating in over 50 emerging markets, including Africa, plans to apply for licences covering exchange platform and payment processing activities. According to Edline Murungi, the company is positioning itself for a positive outcome, which would lead to increased partnerships and business expansion in Kenya. This move is not surprising, given Kenya's strategic location and growing economic importance in the region.

Binance, Kotani Pay, VALR, Luno, and other global and Africa-focused crypto firms are lining up to apply for virtual asset licences in Kenya. This competition for regulatory approval is evidence of the growing attractiveness of the Kenyan crypto market and the need for clear regulations that would allow firms to operate with confidence.

Kenya's regulatory shift comes as governments across Africa attempt to balance growing consumer adoption of crypto assets with concerns around financial crime, investor protection, and market stability. The country's framework gives regulators visibility over virtual asset firms while establishing requirements around governance, compliance, and reporting. This move is likely to have far-reaching implications for the African crypto landscape, as other countries may follow suit in establishing their own regulatory frameworks.

As Kenya's regulatory framework takes shape, we can expect to see increased competition among crypto firms vying for licences. This will lead to a more formalised and regulated crypto market, which will in turn attract more investors and consumers. While the compliance bar is high, it presents an opportunity for firms to establish a strong presence in one of Africa's fastest-growing digital asset markets. For Kenya, this regulatory shift represents a significant milestone in its journey to establish a clear and effective framework for the crypto industry.

With the licencing process expected to commence within the next few weeks, it's clear that Kenya is positioning itself as a hub for crypto activity in Africa. As the region's largest crypto market, Kenya's regulatory framework will have far-reaching implications for the African crypto landscape. With its strategic location and growing economic importance, Kenya is likely to remain a key player in Africa's growing crypto market.