<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2026/06/16160044/13736-375x212.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2026/06/16160044/13736-662x374.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2026/06/16160044/13736.webp 686w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2026/06/16160044/13736-662x374.webp" alt="" class="wp-image-13772"/></figure>


Kenya&#x27;s National Treasury published draft regulations in March 2026. They&#x27;d establish formal licensing and oversight for stablecoin issuers operating in the country. A public comment window ran through April 10. The rules fall under the Virtual <a href="https://www.thecoinzone.com/stablecoins/new-trump-crypto-working-group/" data-wpil-monitor-id="2686">Asset Service Providers Act</a>, enacted in 2025. It&#x27;s the most detailed <a href="https://www.thecoinzone.com/news/hana-standard-chartered-digital-assets-partner/" data-wpil-monitor-id="2679">digital asset</a> framework the East African nation has produced. Both the <a href="https://www.thecoinzone.com/news/global-central-banks-support-powell-independence/" data-wpil-monitor-id="2680">Central Bank</a> of Kenya and the Capital Markets Authority helped shape the text.
<a href="https://www.dentonshhm.com/en/insights/alerts/2026/may/13/the-draft-virtual-asset-service-providers-regulations-2026" target="_blank" rel="noopener">Dentons Hamilton Harrison and Mathews</a> published a legal alert on May 13. It breaks down what the draft covers: licensing requirements, governance standards, <a href="https://www.thecoinzone.com/news/78-banking-groups-push-back-clarity-act-stablecoin/" data-wpil-monitor-id="2683">stablecoin backing</a>, and issuance oversight. The framework is function-based. That means a <a href="https://www.thecoinzone.com/stablecoins/stablecoins-are-primed-for-huge-growth-in-2025-heres-what-you-need-to-know/" data-wpil-monitor-id="2675">stablecoin issuer&#x27;s</a> oversight could fall under payments, banking, or capital markets rules. It depends on how the product&#x27;s actually used. TechTrendsKE reported that detail on May 15.
Kenya <a href="https://www.thecoinzone.com/news/open-usd-launches-blackrock-visa-stripe-140-backers/" data-wpil-monitor-id="2676">News</a> Agency reported the National Treasury launched formal public participation in April 2026. Industry players and the <a href="https://www.thecoinzone.com/defi/fighting-for-cryptos-future-how-to-write-effective-policy-comments/" data-wpil-monitor-id="2687">public</a> were invited to submit feedback. The Treasury also published a Regulatory Impact Statement on its website. It outlines the rationale and expected economic effects of the proposed regime.
The timing matters. Emerging-market governments are racing to <a href="https://www.thecoinzone.com/news/big-banks-tokenized-deposit-network-stablecoin-rival/" data-wpil-monitor-id="2682">build stablecoin</a> frameworks. Dollar-denominated tokens like <a href="https://www.thecoinzone.com/stablecoins/what-is-mica-stablecoin-regulation-europe-usdc-usdt/" data-wpil-monitor-id="2684">USDT and USDC</a> are becoming monetary infrastructure. Kenya&#x27;s voice in this conversation carries weight. It&#x27;s home to one of Africa&#x27;s most mature mobile money ecosystems. M-Pesa built that foundation. Kenya also consistently ranks among the continent&#x27;s highest <a href="https://www.thecoinzone.com/blockchain/crypto-adoption/" data-wpil-monitor-id="2677">crypto adoption</a> markets by population.
Binance co-founder Changpeng Zhao has been direct about the moment. Every country <a href="https://www.thecoinzone.com/news/compliance-blockchain-stablecoins-needed/" data-wpil-monitor-id="2678">needs a local stablecoin,&quot;</a> Zhao said in a post that drew more than 6,700 interactions, according to LunarCrush data.
Kenya&#x27;s not moving alone. Thailand has reportedly <a href="https://www.thecoinzone.com/news/tether-launches-usat-stablecoin-american-market/" data-wpil-monitor-id="2685">launched a stablecoin</a> sandbox program. That&#x27;s based on high-engagement social signal data. Full details weren&#x27;t available at publication. Brazil&#x27;s crypto <a href="https://www.thecoinzone.com/news/flow-capital-tokenizes-150m-credit-fund/" data-wpil-monitor-id="2681">capital flows</a> have drawn IMF scrutiny, according to French financial outlet BFM TV.
For Circle and Tether, the math is changing in non-Western markets. Local licensing, backing requirements, function-based oversight—that&#x27;s the new baseline. Distribution in Kenya&#x27;s market may require direct regulatory engagement. Passive cross-border reach won&#x27;t cut it. Whether smaller local issuers face tighter or easier entry depends on how the <a href="https://www.thecoinzone.com/news/bitgo-stablex-100m-digital-asset-treasury/" data-wpil-monitor-id="2688">Treasury</a> and its agency partners respond to April 10 consultation feedback.

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Kenya Moves to License Stablecoin Issuers Under 2026 Crypto Framework

Kenya's National Treasury proposes stablecoin licensing rules under its 2026 crypto framework. See what it means for issuers like Circle and Tether.