Binance, Luno, Yellow Card and Others Apply for Kenyan Crypto Licences Under New Regulations

Kenya’s new crypto licensing regime is pushing major digital asset platforms toward formal registration. Binance, Luno, Yellow Card and other industry players are now preparing to operate under the country’s Virtual Asset Service Providers (VASP) framework.

The move comes after Kenya gazetted its Virtual Asset Service Providers Regulations, 2026 in July. The regulations operationalise the Virtual Asset Service Providers Act, 2025 and create a formal licensing system for crypto businesses operating in or from Kenya. The new framework also gives existing operators a transition period. They must comply with the licensing requirements by 4 November 2026.

Kenya’s Crypto Licensing Rules Are Now in Force

Kenya spent months consulting the crypto industry before finalising its licensing framework. The National Treasury first published draft VASP regulations in March 2026. It worked with the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) to develop the rules. The government then opened the proposals to public participation.

The final regulations now provide the framework that crypto businesses must follow. They cover exchanges, wallet providers, stablecoin issuers, investment advisers, tokenisation platforms and other virtual asset services. They also set requirements for governance, capital, cybersecurity, consumer protection and anti-money laundering controls.

For the industry, this marks a major shift. Crypto businesses no longer have to operate around an uncertain regulatory environment. Instead, they must decide which services they provide and obtain the appropriate licence.

Binance, Luno and Yellow Card Are Engaging With the Framework

Binance, Luno and Yellow Card are among the major platforms that have participated in Kenya’s regulatory discussions. Representatives from the three companies took part in stakeholder engagements on the VASP regulations. The discussions covered licensing categories, capital requirements, stablecoins, supervision and anti-money laundering safeguards. Their participation is significant because these platforms already serve Kenyan crypto users. Luno, for example, offers Kenyan customers KES deposits and withdrawals.

The company also provides crypto trading services for verified users in Kenya. Yellow Card has also built a wider African presence around stablecoin and local-currency infrastructure. Binance, meanwhile, remains a major global exchange with a strong user base across African markets. However, it is important to separate participation in the regulatory process from licence approval. Kenya’s regulators have not publicly announced licences for these companies. The new rules create the pathway for them to apply and operate legally once they meet the requirements.

What Kenyan Crypto Firms Must Prepare For

The licensing process will require more than an application form. Applicants must demonstrate that they have the right governance, financial resources and compliance systems. They must also provide information about their business model, ownership structure and operations. The regulations also introduce fit-and-proper requirements for directors, shareholders and senior management.

Companies must maintain appropriate anti-money laundering and counter-terrorism financing controls. They must also have cybersecurity systems, complaint procedures and measures to protect customer assets. These requirements could raise the cost of operating a crypto business in Kenya. At the same time, they could improve trust among users, banks and institutional investors.

Capital Requirements Have Been Lowered

One of the biggest changes came before the final rules took effect. Kenya reduced several of the capital requirements proposed in the March draft. The minimum paid-up capital for a crypto exchange fell from KES 150 million to KES 100 million. The requirement for a virtual asset wallet provider remains at KES 150 million. Stablecoin issuers face a higher threshold of KES 300 million. The final framework also reduced some licence fees.

For exchanges, the application fee is KES 100,000, while the licence fee is KES 1 million. These changes could make the market more accessible to well-funded local and international operators. Still, the financial requirements remain significant. Smaller startups may struggle to meet them without raising additional capital. Larger exchanges and established fintech companies could have an advantage.

CBK and CMA Will Share Oversight

Kenya has adopted a two-regulator approach to virtual assets. The Capital Markets Authority (CMA) will oversee several investment-related activities. These include exchanges, brokers, investment advisers, virtual asset managers, initial coin offerings and tokenisation platforms. The Central Bank of Kenya (CBK) will oversee activities that fall within its mandate, including certain payment and stablecoin functions.

A business offering several regulated services may therefore need to deal with both regulators. This structure reflects the different risks associated with virtual asset businesses. An exchange faces different risks from a stablecoin issuer or wallet provider. The regulators can therefore apply requirements based on the services each company provides.

Why the Rules Matter for Kenyan Users

For everyday crypto users, the biggest change may be greater accountability from service providers. Licensed firms must separate customer assets from their own assets. They must also maintain systems that protect customer funds and support proper complaints handling. The rules also introduce stronger requirements around advertising and consumer disclosures.

That could reduce misleading crypto promotions and give users more information before they commit funds. The framework may also make it easier for regulated crypto businesses to build relationships with banks and other financial institutions. That could become important as Kenya’s crypto market moves beyond trading and into payments, remittances and stablecoin-based financial services.

The November Deadline Is Approaching

Existing virtual asset businesses have until 4 November 2026 to comply with the new licensing regime. New businesses that fall within the regulatory framework must meet the licensing requirements before they begin operating. The transition period gives established platforms time to prepare their applications and compliance systems.

It also gives regulators time to process applications and build their supervisory capacity. According to regulatory advisers, businesses are already preparing application packages as the new framework takes effect. Regulators are expected to receive a significant number of applications in the coming months.

Kenya Wants a More Accountable Crypto Market

Kenya’s licensing push goes beyond controlling crypto exchanges. The government wants to bring the wider virtual asset industry into the formal financial system. That means creating clearer rules for businesses while improving consumer protection and financial crime controls.

The approach could also strengthen Kenya’s position as a digital asset hub in East Africa. The country already has strong fintech infrastructure and widespread mobile money adoption. A clear crypto framework could help connect those strengths with regulated digital asset services.

However, implementation will determine whether the framework achieves that goal. Regulators will need to process applications efficiently and apply the rules consistently. Crypto companies will also need to show that they can meet the requirements without passing excessive costs on to users.

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Editorial Takeaway

Kenya’s crypto licensing regime has moved from policy discussions to implementation. Binance, Luno, Yellow Card and other industry players now face a clearer path toward operating within the country’s formal digital asset framework.

The key question is no longer whether Kenya will regulate crypto. It is how effectively the country can turn regulation into a market that supports innovation, protects users and attracts serious digital asset businesses. If the licensing process remains transparent and predictable, Kenya could strengthen its position as one of Africa’s most important regulated crypto markets.