Kenya Reduces Capital Requirements for Stablecoin Issuers by 40% to $2.32 Million

On July 28, according to Bitcoin.com News, the Kenyan Treasury has released revised regulatory rules, reducing the minimum paid-up capital requirement for stablecoin issuers by 40%, from nearly $3.9 million in the previous draft to approximately $2.32 million (300 million Kenyan Shillings), in order to lower the threshold for global issuers entering the local market. The new regulations also maintain stricter oversight requirements: the Central Bank of Kenya will implement broad regulation over stablecoin issuers and other virtual asset service providers; stablecoins must be backed 1:1 by compliant reserve assets, and customers can redeem them at face value within two business days. Regarding reserve arrangements, at least 30% of customer funds must be deposited into an segregated trust account with a Kenyan commercial bank, with the remaining funds invested in qualified local assets; stablecoins pegged to fiat currencies must also be supported by reserve assets denominated in the same currency as their pegged currency.