Kenya’s National Treasury has introduced draft Virtual Asset Service Provider regulations proposing strict controls on cryptocurrency advertising and new fees on digital asset transactions. The framework, open for public consultation until April 10, seeks to increase regulatory oversight, standardize marketing practices, and implement revenue-generating charges across the sector.
Under the proposed rules, entities cannot promote virtual asset services or token offerings in or from Kenya without regulatory compliance. The draft defines advertising broadly, encompassing websites, social media, email campaigns, outdoor messaging, seminars, and recorded presentations distributed online. Token issuers must secure a regulatory no-objection notice before launching any campaign and are restricted to advertising only within the approved timeframe.
Content guidelines mandate clear, plain-language disclosures of fees, withdrawal conditions, and investment risks. Risk warnings must be prominent and cannot be obscured by fine print, margins, or hyperlinks. Non-compliance carries significant penalties. Violating core advertising standards may result in fines up to KES 3 million or one year imprisonment. Misleading promotions, including those involving influencers or third-party marketers, attract penalties up to KES 3 million or two years in jail. Campaigns operating outside the authorized window also incur the maximum fine.
The framework also establishes financial levies on industry operations. Exchanges and token platforms would pay a 0.05 percent fee on every transaction, applied to both parties involved. Token offerings face a 0.5 percent approval fee on the total amount raised, while stablecoin issuers are subject to a flat KES 200,000 approval fee. Virtual asset businesses will also navigate licensing costs and annual renewals tied to turnover.
These levies operate in addition to the commercial fees platforms charge on trades. By diverting a portion of transaction value to regulators, the rules reduce the net revenue retained by operators. This structure introduces higher baseline costs, which may pressure businesses to recalibrate pricing models or result in increased expenses for end users.
The consultation aligns with growing regional oversight of retail-facing digital asset activity. Recently, the Bank of Ghana directed virtual asset operators to halt mass marketing campaigns. Kenya’s National Treasury is currently reviewing stakeholder feedback. If finalized, the regulations will formalize compliance requirements and establish a structured fiscal contribution from the country’s virtual asset economy.
