Circle, the issuer of the USDC stablecoin and operator of the Circle Payments Network, is in discussions with the Kenyan government as the country works to implement its Virtual Asset Service Providers (VASP) Act, 2025 and build formal rules for digital assets and related services.
According to Ambassador Philip Thigo, special envoy to the president in Kenya’s foreign affairs department, Circle has engaged in consultations with the National Treasury as regulators move to operationalise the new VASP regulations. Thigo described the talks as productive and tied to broader efforts to build “credible, rules-based digital asset markets” that can support payments, tokenisation and other blockchain-enabled infrastructure across the economy.
Circle Payments Network and Kenya’s regulatory evolution
The Virtual Asset Service Providers (VASP) Act, 2025 was gazetted in October 2025 and became effective in November, establishing a legal framework for licensing and supervising digital asset service providers in Kenya. Under the law, the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) are mandated to regulate and license virtual asset activities such as trading, custody and payments once detailed regulations are published.
Circle’s talks with Kenyan authorities focus on how its Circle Payments Network (CPN) can support compliant stablecoin use cases once the licensing regime is active. CPN connects banks, payment service providers, VASPs and enterprises through stablecoins like USDC, enabling cross-border payments, treasury operations and settlement without traditional correspondent banking intermediaries.
Representatives at the meeting emphasised that the discussions are beyond “crypto hype,” describing them instead as efforts toward capital formation, credibility and integrity in digital financial infrastructure. Officials also highlighted the importance of interoperability with global regulatory norms, including frameworks similar to the U.S. GENIUS Act and Singapore’s digital asset guidelines.
Kenya’s VASP Act represents one of the continent’s most significant legislative moves to regulate digital asset services, and Circle’s engagement signals strong interest from an established global stablecoin issuer to play a role in the emerging market. If connected to Kenya’s payments ecosystem, the Circle Payments
Network could offer:
- Faster, blockchain-enabled settlement for cross-border transfers
- Stablecoin rails for institutional and retail payments
- Compliance-ready infrastructure for banks and fintechs looking to offer digital asset services
Industry observers say that deep involvement from firms like Circle could help accelerate the arrival of regulated crypto payment services in the country once implementing regulations are issued.
Officials said the discussions would continue through March 2026, coinciding with the Kenya International Investment Conference, where governance, infrastructure and investment opportunities tied to digital assets are expected to be showcased.
Circle’s talks with Kenya underscore a broader trend in Africa , where regulators and established crypto firms are beginning to move beyond uncertainty toward structured dialogue that shapes legal frameworks and market access.
