Kenya’s National Treasury has lowered the minimum paid-up capital requirement for stablecoin issuers by 40% to about $2.32 million, below the nearly $3.9 million threshold set out in a draft published in March last year. Under the new framework, the Central Bank of Kenya (CBK) will supervise stablecoin issuers and other virtual asset service providers, and it will have the authority to require local platforms to stop offering offshore-issued tokens. The rules also set detailed standards for reserve management, customer fund protection, liquidity, reporting and redemption.
At least 30% of customer funds must be held in segregated trust accounts at Kenyan commercial banks, while the remainder must be invested in qualified local assets. For fiat-backed stablecoins, reserves must match the pegged currency. Issuers must maintain either $463,300 in liquid capital or liquid assets equal to 100% of liquid liabilities, whichever is higher, and hold qualified reserve assets on a 1:1 basis. The framework also requires quarterly stress tests, monthly reserve and transaction reports, and redemption at par value within two business days.
Kenya’s National Treasury has reduced the minimum paid-up capital requirement for stablecoin issuers by 40% to about $2.32 million, according to ChainCatcher. The figure is below the nearly $3.9 million threshold proposed in draft rules released in March last year.
Under the new rules, the Central Bank of Kenya, or CBK, will regulate stablecoin issuers and other virtual asset service providers. It can also require local platforms to stop offering offshore-issued tokens.
Customer funds and reserve standards
The framework says at least 30% of customer funds must be placed in segregated trust accounts at Kenyan commercial banks. The rest must be invested in qualified local assets. For fiat-backed stablecoins, reserves must be denominated in the same currency as the peg.
Issuers must maintain $463,300 in liquid capital, or an amount equal to 100% of liquid liabilities, whichever is higher. They are also required to hold qualified reserve assets on a 1:1 basis.
Reporting and redemption rules
The framework requires quarterly stress tests and monthly reserve and transaction reports. It also says customers must be able to redeem tokens at face value within two business days.
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