The International Monetary Fund has asked Kenya to ease stablecoin reserve rules and review fixed capital floors for crypto firms. The proposed changes target the Virtual Asset Service Providers Act and its regulations. The current exchange minimum is Sh100 million, or US$770,000.
Reserve custody concerns
Kenya currently requires foreign and locally denominated stablecoin issuers to hold part of their reserves in Kenya. The IMF says those assets may face risks that would be lower in issuers' home markets. It warns that major issuers could avoid local subsidiaries and keep serving users through international exchanges.
Proportionate capital
The IMF wants capital requirements to reflect a firm's size, scale, and complexity. It says the current exchange threshold could be too high for smaller entrants. Stablecoin issuers face a higher minimum of Sh300 million under the regulations.
Kenya's crypto market
Kenya processed Sh740 billion, or US$5.7 billion, in crypto transactions in the year to June 2026. That was up 38% from Sh505 billion, or US$3.89 billion, according to Chainalysis. The country ranked as Africa's third-largest crypto economy behind South Africa and Nigeria.
Any amendment would need to come through Kenya's Treasury. The IMF has also asked Kenya to add Travel Rule obligations for crypto platforms without delay. No public response has been reported from the Central Bank of Kenya or the Treasury.