For crypto startups, breaking Kenya’s advertising rules could cost $23,000 in fines

Kenya is moving to place strict limits on how cryptocurrency companies advertise their businesses, while also introducing fees that take a cut from activity across the sector. The changes would increase oversight of marketing and add new costs to crypto transactions.

Kenya’s National Treasury has published the proposed framework under draft Virtual Asset Service Provider (VASP) regulations, which are open for public consultation until April 10. If adopted, they would require crypto firms to comply with detailed advertising rules and pay fees linked to trading and token issuance.

The draft rules signal Kenya’s approach to regulating how crypto businesses promote their services and how the public engages with their advertising. Advertising, a critical channel through which tech startups attract users, would be tightly controlled through approvals, content standards, and penalties. 

The National Treasury is also proposing fees on transactions and token offerings. Virtual asset companies would not only need permission to promote their services, but would also pay each time users trade or invest. Together, these measures would increase compliance requirements and operating costs for crypto businesses in the country.

Under the proposed rules, no person or company would be allowed to advertise virtual asset services or promote token offerings “in or from Kenya,”—referring to businesses that derive economic benefit or income from the country—unless they comply with the regulations. The definition of advertising is broad and includes websites, social media posts, email campaigns, outdoor and online messaging, seminars, and recorded presentations shared online.

Token issuers would need approval before launching any promotional campaign. They must first receive a “no objection” notice from the regulator and may only advertise within the approved time frame. Campaigns that run outside that window could attract fines up to KES 3 million ($23,000).

All advertisements must meet strict content standards. They are required to be fair, clear, and written in plain language. Companies must clearly disclose fees and withdrawal conditions, and present risks alongside potential returns. Risk warnings cannot be buried in fine print, pushed to the margins, or hidden behind links and long scrolling pages.

Violations of core advertising rules could lead to fines of up to KES 3 million ($23,000) or one year in prison, or both. Misleading promotions, including those conducted by influencers or third-party marketers, could attract fines of up to KES 3 million ($23,000), a two-year jail term, or both.

The rules would place most digital marketing activity in Kenya’s virtual asset industry under regulatory review. Ghana has also taken a similar approach. In February, the Bank of Ghana (BoG) asked virtual asset operators, including those in its sandbox, to “refrain from mass marketing and public promotional campaigns,” signalling a regional shift toward tighter control of retail-facing crypto activity.

Alongside the advertising limits, Kenya is also introducing new fees on crypto activity.

Crypto exchanges and token issuance platforms will pay a 0.05% fee on every transaction, charged to each counterparty (both the demand and supply sides). Token offerings would incur a 0.5% approval fee on the amount raised, while stablecoin issuers would pay a flat KES 200,000 ($1,500) approval fee. Virtual asset startups would also face licencing costs and annual renewals tied to turnover.

These charges come on top of the commercial “take rate,” the small percentage virtual asset businesses keep from each trade as revenue, further squeezing overall margins. For example, if a virtual asset exchange charges a 1% fee on a trade, the draft rules mean that a slice of that transaction value would also be paid to regulators, so the platform keeps a smaller share of the fee as income. This could squeeze profit margins or push firms to pass more of their costs on to users.

The draft regulations are still under consultation, but they already signal tighter control over crypto advertising and, by extension, user acquisition. Every transaction is taxed, raising compliance costs for operators while generating revenue for the government.