Mbadi hits crypto permit speculators with 3-year rule
The Kenyan National Treasury has implemented new regulations requiring cryptocurrency license holders to begin operations within 12 months and hold their permits for at least 36 months before transferring them. These measures are designed to prevent speculative trading of regulatory licenses by ensuring only active, long-term businesses hold permits.
Why it matters
This policy aims to professionalize the crypto sector in Kenya by weeding out 'license flippers' and ensuring regulatory compliance among virtual asset service providers.
The National Treasury has introduced new restrictions on the transfer of cryptocurrency licences, requiring operators to hold and actively use their permits for at least three years before they can be sold or assigned to another party.
The new Virtual Asset Service Providers (VASP) Regulations, 2026, published by Treasury Cabinet Secretary John Mbadi, also require successful applicants to commence operations within 12 months of receiving a licence.
The rules aim to curb speculative licence trading, where individuals or firms acquire regulatory licences not to operate cryptocurrency businesses but to later sell or transfer the permits for a profit once they become scarce or more valuable.
“Upon grant of a licence under these rules, a licensee shall commence its virtual asset business within twelve months of the date of grant of the licence,” the regulations say.
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