Treasury bows to pressure, cuts capital limit for crypto firms
The Kenyan Treasury has reduced the minimum paid-up capital requirements for cryptocurrency firms by 40 percent to encourage investment. The new regulations set the limit at Sh300 million for stablecoin issuers, responding to industry concerns that previous high costs would stifle market growth.
Why it matters
This policy shift highlights the balancing act governments face in regulating emerging digital asset markets while remaining attractive to global investors.
The Treasury has substantially cut its earlier proposed minimum capital for cryptocurrency firms by up to 40 percent, bowing to pressure amid warnings that steep charges would deter investments in the fast-rising segment.
New regulations published by Treasury Cabinet Secretary John Mbadi show that cryptocurrency operators are required to have a minimum paid-up capital of up to Sh300 million, marking a significant reduction from the earlier proposed limit of Sh500 million.
Stablecoin issuers have the highest minimum paid-up capital requirements of Sh300 million, down from the earlier proposed Sh500 million, while their liquid capital is set at Sh60 million or 100 percent of their current liabilities for at least 30days—a reduction from their earlier suggested Sh100 million, or 100 percent of current liabilities, whichever is higher.
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