Kenya could force local cryptocurrency exchanges to stop offering foreign-issued stablecoins—such as Tether’s USDT, Circle’s USDC, and Mento Labs’ USDm—after the central bank was granted authority to restrict access to offshore stablecoins, tightening oversight of the dollar-backed tokens that dominate crypto trading across Africa.
The Kenyan Virtual Asset Service Providers (VASP) Regulations, 2026, published on July 24, prohibit licenced cryptocurrency exchanges from offering any stablecoin that has not been approved by the Central Bank of Kenya (CBK) and issued by a licenced stablecoin issuer.
The new provision, added to the gazetted version of the rules, could force offshore stablecoin issuers such as Tether and Circle to seek CBK approval and work through licenced Kenyan entities if they want their tokens to remain available on regulated Kenyan exchange platforms. It also gives the central bank direct oversight to cut off local access to foreign stablecoins without having to regulate the offshore issuers themselves.
“A virtual asset exchange shall not list any stablecoin unless that stablecoin has been approved by the Central Bank of Kenya and is issued by a duly licenced stablecoin issuer,” the policy read.
