Treasury drops cap on crypto ownership in investor boost
The Kenyan National Treasury has removed a proposed 33.3 percent ownership cap on cryptocurrency exchanges and wallet providers in its final VASP regulations. This change is intended to attract more investment by aligning the sector with standard corporate governance structures.
Why it matters
The removal of these restrictions is a major regulatory pivot that could accelerate the growth and institutionalization of the virtual asset market in Kenya.
The National Treasury has scrapped a proposal that would have capped ownership in cryptocurrency exchanges, wallet providers and stablecoin issuers at one-third, easing a restriction that experts had warned would discourage investment in Kenya's virtual assets sector.
The provisions have been dropped in the final Virtual Asset Service Providers (VASP) Regulations, 2026, published by Treasury Cabinet Secretary John Mbadi.
It would have barred any individual or entity from controlling more than 33.3 percent of the issued share capital, voting rights, board representation, dividends or shareholder loan interests in a virtual asset exchange, stablecoin issuer or wallet provider.
Scrapping the proposal now opens the door for founders, venture capital firms and strategic investors to take controlling stakes in crypto businesses, bringing the governance framework closer to conventional corporate ownership structures.
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