Kenya will cut capital requirements for stablecoin issuers by 40% to $2.32 million

PANews July 28. According to Bitcoin.com News, Kenya’s Ministry of Finance has released revised regulatory rules that cut the minimum paid-in capital requirement for stablecoin issuers by 40%, lowering it from nearly $3.9 million in the previous draft to about $2.32 million (3 hundred million Kenyan shillings) to reduce the threshold for global issuers to enter the local market.

The new rules also retain relatively strict regulatory requirements: the Central Bank of Kenya will implement broad oversight of stablecoin issuers and other virtual asset service providers; stablecoins must be supported 1:1 by compliant reserve assets, and customers can redeem at face value within two business days. For reserve arrangements, at least 30% of customer funds must be deposited into segregated trust accounts at Kenyan commercial banks, while the remaining funds are invested in eligible local assets; stablecoins pegged to fiat currencies must be supported by reserve assets in the same currency as the one they are pegged to.