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Multi-agency oversight by CBK, CMA, and Treasury aims to strengthen supervision and enforcement.
Kenya has moved a step closer to regulating virtual assets after concluding public participation on the 2026 VASP Regulations, according to Kenya National Treasury. The process follows the 2025 VASP Act and outlines licensing, compliance, and oversight measures. Authorities now shift to reviewing submissions before finalizing rules aimed at managing crypto activity and protecting users.
Framework Sets Licensing and Compliance Rules
The draft regulations establish a legal structure for virtual asset businesses operating in Kenya. These include cryptocurrencies, tokenized assets, and stablecoins. According to the Kenya National Treasury, the framework introduces licensing requirements and strict operational standards.
Notably, firms must meet capital thresholds and ownership suitability checks. They must also implement governance systems and risk management controls. In addition, anti-money laundering and counter-terrorism financing measures form a core requirement.
This structure connects directly to broader oversight. Regulators aim to ensure consistent supervision across all licensed entities operating within or from Kenya.
Consumer Protection and Market Integrity Measures
Beyond licensing, the draft outlines specific consumer protection rules. Service providers must disclose risks clearly and maintain transparent pricing models. They must also establish complaint handling systems.
However, asset protection remains a central focus. Firms must separate customer funds from operational accounts. This reduces misuse risks and improves accountability.
Meanwhile, the framework enforces market conduct rules. Authorities require due diligence before listing assets and continuous monitoring of trading activity. Manipulation, insider trading, and false trading face strict prohibition.
Coordinated Oversight and Next Steps
To support enforcement, Kenya adopts a multi-agency approach. The Central Bank of Kenya, Capital Markets Authority, and the Treasury will oversee implementation jointly. This coordination aims to strengthen supervision and regulatory consistency.
Moreover, the draft introduces ongoing reporting and cybersecurity requirements. Firms must conduct audits and maintain insurance coverage. These measures address operational risks and system resilience.
Following the consultation phase, authorities will consolidate stakeholder feedback. The review process will determine final provisions before the regulations take effect.
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Senator Cynthia Lummis Pushes Urgent Vote On CLARITY Act As Deadline Looms
Cynthia Lummis warns CLARITY Act could face delays until 2030 without urgent Senate action before key deadline.
Lawmakers face tight timeline, with limited Senate floor time and competing proposals slowing progress.
Stablecoin yield debate remains central, with banks raising concerns over deposits and consumer costs.
U.S. Senator Cynthia Lummis warned that Congress may not pass the CLARITY Act until at least 2030 without immediate Senate action. Her statement comes as lawmakers approach a key April 13–20 committee deadline. The bill, which already passed the House, now faces a tight timeline as legislative pressure builds in Washington.
Senate Timeline Tightens Amid Key Deadline
Cynthia Lummis urged lawmakers to move quickly as the Senate Banking Committee prepares for markup. She stated that failure to act now could delay progress for several years. According to her, the current window represents the last viable chance before the next political cycle.
Following committee review, the bill must clear reconciliation and a full Senate vote. It will also require alignment between chambers before reaching President Donald Trump. However, limited Senate floor time adds pressure as the timeline narrows.
Lawmakers Push as Delays Raise Concerns
Treasury Secretary Scott Bessent also called for swift action on the legislation. He said Senate floor time remains scarce and emphasized the need to move forward. His comments follow growing concern about delays ahead of the Memorial Day recess starting May 21.
At the same time, internal discussions continue among lawmakers. Some Republican senators are weighing broader financial frameworks, which complicates negotiations. These overlapping proposals have slowed progress on the CLARITY Act.
Stablecoin Debate Remains Central Issue
A key disagreement centers on stablecoin yield provisions within the bill. The proposal restricts passive yield while allowing activity-based rewards. This has drawn attention from banking groups concerned about deposit outflows.
However, the White House Council of Economic Advisers provided new data on the issue. The report estimated only a 0.02% increase in lending if yield is restricted. It also projected about $800 million in annual costs to consumers.
Faryar Shirzad, Chief Policy Officer at Coinbase, said stablecoin yield could expand financial services. Meanwhile, the bill’s outcome now depends on how lawmakers resolve these disputes within the limited timeframe.
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Hong Kong Issues First Stablecoin Licenses To Banks
HKMA approved HSBC and Anchorpoint as first stablecoin issuers, selecting firms with strong financial and risk expertise.
New ordinance sets strict rules on reserves, transparency, and redemption, allowing only licensed stablecoin issuance.
Licenses enable HKD-pegged stablecoins and cross-border payments, with rollout expected in the coming months.
Hong Kong’s regulator issued its first stablecoin licenses on April 10, approving HSBC and Anchorpoint Financial after reviewing 36 applications. The Hong Kong Monetary Authority granted the licenses under the Stablecoins Ordinance to enable Hong Kong dollar-pegged issuance. The move allows cross-border payments as authorities push for a regulated framework linking traditional finance with digital assets.
Banks Selected for Financial and Risk Expertise
The Hongkong and Shanghai Banking Corporation and Anchorpoint Financial received the initial approvals. Anchorpoint operates as a consortium led by Standard Chartered, alongside Animoca Brands and Hong Kong Telecommunications. According to the HKMA, both applicants demonstrated strong financial and risk management experience.
Darryl Chan, Deputy Chief Executive of the HKMA, said the firms align with stablecoin objectives. He noted their background supports bridging traditional and digital finance systems. Notably, both institutions already issue Hong Kong dollar banknotes, a role dating back decades.
Ordinance Sets Rules for Issuance and Operations
The approvals follow the Stablecoins Ordinance, which took effect in August 2025. The framework defines requirements for reserves, transparency, redemption rights, and risk controls. Under these rules, only licensed entities can issue stablecoins within Hong Kong.
According to the HKMA, the licenses took immediate effect upon approval. However, both firms plan to complete operational preparations before launch. The South China Morning Post reported that services could begin within the next few months.
Focus Shifts to Payments and Rollout Plans
The licenses allow issuance of stablecoins pegged to the Hong Kong dollar. They also permit cross-border payment activities tied to digital assets. According to business plans, both entities aim to deploy payment-focused use cases first.
Eddie Yue, Chief Executive of the HKMA, described the development as a key milestone. He said the initiative targets inefficiencies in financial and economic activities. Meanwhile, the regulator indicated that additional licenses may follow under the same framework.
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