Kenya has given licenced crypto exchanges and other virtual asset companies a formal legal right to challenge regulatory decisions, one of the most significant additions to the country’s finalised cryptocurrency regulations.
Under the finalised Virtual Asset Service Providers (VASP) Regulations, exchanges, wallet providers, token issuance platforms, stablecoin issuers, and other virtual asset firms can appeal licence refusals, suspensions, revocations, and other regulatory sanctions imposed by the relevant authorities.
“A person aggrieved by any decision of the relevant regulatory authority under these Regulations may appeal against that decision in accordance with section 43 of the Act,” the National Treasury said in the policy.
The appeals provision is particularly significant because the same regulations substantially expand the government’s enforcement powers. Regulators may reject licence applications, suspend or revoke licences, impose administrative sanctions, intervene in the management of a provider and appoint statutory managers to take control of customer assets under specified circumstances.
The regulations also establish a legal framework for freezing and seizing virtual assets linked to suspected financial crime. Subject to court approval, investigators may obtain access to hardware wallets, seed phrases, and other devices necessary to secure digital assets under investigation.
