By Sam Kim, Co-Founder, GoChapaa
Late in 2025, Kenya achieved a milestone that crypto advocates across Africa have long awaited: passage of its Virtual Asset Service Providers (VASP) Act, bringing forward the country’s first comprehensive regulatory framework for digital assets and virtual asset service providers.This is a development with profound implications for 2026, not only for Kenya, but for the evolution of the crypto ecosystem across the continent.
For years, African crypto markets have operated in a grey zone: vibrant activity and enthusiastic adoption, but without clear statutory guardrails. In Kenya, diverse digital asset services, from custodial wallets to token platforms, were until recently unlicensed and unregulated, even as millions of citizens engaged with cryptocurrencies in peer-to-peer transactions or as a hedge against currency volatility.
The new law changes that calculus by laying out licensing rules, anti-money-laundering and consumer-protection requirements, and joint oversight by the Central Bank of Kenya and the Capital Markets Authority. This regulatory shift matters because clarity births confidence. When rules are defined, institutional actors, banks, fintechs, and traditional capital markets participants can begin to engage with virtual assets not as speculative curiosities but as building blocks of future financial infrastructure.
With that in mind, here are the key trends that we believe will shape the African crypto landscape in 2026.
1. Formal Regulation Will Expand Across African Markets
Kenya is not alone. Ghana has advanced its crypto regulatory framework and made crypto trading legal under a new law, reflecting a broader wave of legislative activity across the continent. And while implementation timelines vary, the direction of travel is unmistakable.
This trend mirrors global momentum. Regulatory clarity, when well executed, reduces uncertainty, manages systemic risk, and creates predictable environments for innovation. In 2026, expect more African governments to introduce or refine frameworks for exchanges, wallet providers, stablecoin issuers, and tokenisation platforms.
The shift is not just about compliance, but about enabling market participation from a broader set of actors — including local startups, institutional investors, and financial intermediaries — who will only engage at scale where the legal terrain is well defined.
2. Adoption Will Continue to Surge — Grassroots and Institutional
Crypto adoption in Africa has already been noteworthy. Various indices have shown African nations ranking among the fastest-growing markets globally, driven by demand for remittances, inflation hedging, entrepreneurial activity, and the continued integration of mobile money and digital assets.
In 2026, that adoption is likely to deepen. For individuals and small businesses, digital assets provide increasing practical utility: cheaper cross-border payments, programmable digital contracts, and alternatives where legacy banking systems are limited. And with clearer regulatory frameworks emerging, more people will feel comfortable moving beyond informal wallets and peer-to-peer trades toward regulated services.
Simultaneously, institutional engagement is rising. Across Africa, banks, capital markets, and governments are exploring how to embed blockchain into future financial infrastructure. Central banks, including in major markets such as Nigeria and South Africa, are considering pilot programmes for central-bank-issued digital currencies (CBDCs), tokenised assets, and blockchain-backed settlement systems. These initiatives are likely to gain further traction in 2026.
3. Blockchain Infrastructure
Blockchain’s real promise lies in financial infrastructure, and this will become clearer in 2026. Africa’s financial architecture is already extremely capable at integrating digital innovation at scale: think of mobile money systems like M-Pesa that leapfrogged traditional banking systems. The natural extension is to layer blockchain tools onto this digital fabric.
Stablecoins are one tool that are likely to grow as digital instruments for trade, savings, and cross-border settlement. In markets where currency instability is common, stablecoins offer an alternative that maintains value and lowers remittance costs.
But more broadly, Africans could soon be engaging with blockchain technology without even knowing it. It will simply be part of how our financial systems operate, powering faster payments, safer transactions, and smarter investments behind the scenes.
4. Partnerships Between TradFi and Crypto Will Deepen
As regulatory frameworks crystallise, traditional financial institutions — such as banks, asset managers, payment processors — are beginning to recognise crypto as an extension of digital finance and as a future part of the financial infrastructure. This evolution is especially important for financial inclusion in Africa, where large unbanked populations still exist alongside sophisticated mobile finance ecosystems.
In 2026, we will see more banks exploring digital asset custody services, tokenisation of real-world assets, and even co-development of digital asset products. Some regulators are already encouraging these developments by providing guarded pathways for institutional participation, signalling that crypto can complement rather than compete with conventional finance.
5. Education and Consumer Protection Will Remain Central
Rapid adoption and institutional interest are positive developments, but they come with challenges. The absence of clear frameworks historically led to consumer harm in unregulated schemes and scams. In 2026, responsible policymaking must balance innovation with safeguards: AML/KYC standards, transparent disclosures, and investor protections that build trust rather than stifle innovation.
Education will be equally important. As crypto enters mainstream finance, users — from individual holders to corporate treasuries — need better literacy about risks, interoperability, and secure practices.
Looking Ahead
The passage of Kenya’s VASP Act is a watershed moment for African crypto markets. It marks the transition from informal growth to regulated maturity. But regulation alone does not guarantee success. What matters next is how this emerging framework encourages innovation, authenticity, and meaningful integration with broader financial systems.
In 2026, African crypto markets will be defined not just by adoption curves or trading volumes, but by how effectively blockchain and digital assets become foundational infrastructure — empowering individuals, institutional actors, and African economies alike.
