Virtual asset service providers seeking to open shop in the country will need up to Sh500 million in capital under the proposed regulations by the government as it seeks to implement the Virtual Asset Service Providers (VASP) Act, 2025. Virtual asset service providers seeking to operate in the country will be required to maintain up to Sh500 million in capital under the proposed regulations implementing the Virtual Asset Service Providers Act 2025. The goal is to strengthen the regulatory framework for crypto businesses and promote financial stability. The government is moving to formalize licensing standards as part of the VASP Act 2025.
This capital requirement reflects a broader push to improve risk management, compliance, and consumer protection in the nascent crypto market. Regulators are aligning with international standards to ensure operators have sufficient buffers and robust governance. As the rules are refined, market participants will wait to see how the threshold applies to different license categories and how licensing procedures will unfold. The formulation of licensing criteria and ongoing supervision will shape the sector’s growth and investor confidence.
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