{"id":74969,"date":"2026-07-05T08:51:06","date_gmt":"2026-07-05T08:51:06","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/kenyan-treasury-pushes-30-reserve-requirement-as-stablecoin-firms-warn-of-higher-costs\/"},"modified":"2026-07-05T08:51:06","modified_gmt":"2026-07-05T08:51:06","slug":"kenyan-treasury-pushes-30-reserve-requirement-as-stablecoin-firms-warn-of-higher-costs","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/kenyan-treasury-pushes-30-reserve-requirement-as-stablecoin-firms-warn-of-higher-costs\/","title":{"rendered":"Kenyan Treasury Pushes 30% Reserve Requirement as Stablecoin Firms Warn of Higher Costs"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Kenya\u2019s National Treasury proposed a mandate forcing stablecoin issuers to hold 30% of reserves in local banks.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Crypto platforms warn the rule could trap liquidity and increase remittance costs across Kenya.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Industry leaders seek to continue 2026 talks with regulators to balance user protection with sector growth.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Protecting the Local Market<\/h2>\n<p> <span>Cryptocurrency<\/span> exchanges and Kenya\u2019s National Treasury are reportedly locked in a standoff over a proposed regulation that would force <span>stablecoin<\/span> issuers to hold a significant portion of their reserves in local banks. According to a <a href=\"https:\/\/www.businessdailyafrica.com\/bd\/economy\/cryptos-treasury-clash-over-coin-reserves-rule-5516270\" target=\"_blank\" rel=\"noopener noreferrer\">report<\/a>, the rule requires <span>crypto<\/span> exchanges to hold at least 30% of all funds received for <span>stablecoins<\/span> issued in dedicated accounts across commercial banks in Kenya.<\/p>\n<p>The Treasury\u2019s proposal is said to be aimed at insulating Kenya\u2019s financial ecosystem from the <span>volatility<\/span> of the digital asset markets, <a href=\"https:\/\/news.bitcoin.com\/kenya-narrows-crypto-offshore-gambling-escape-valve-in-finance-bill-2026\/\">protecting local investors<\/a>, and ensuring that <span>stablecoins<\/span> operating within the country have concrete, domestic <span>liquidity<\/span>.<\/p>\n<p>However, digital currency players argue the 30% local reserve mandate is too restrictive and clashes with the decentralized nature of global <span>crypto<\/span> platforms. Industry representatives warn that locking up nearly a third of their reserves in Kenyan commercial banks could choke operational <span>liquidity<\/span>, slow transaction speeds, and increase costs for consumers who use <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoins<\/a> for cross-border trade and remittances.<\/p>\n<p>The dispute comes amid an ongoing push by Kenyan regulators to bring the rapidly growing digital asset sector into the formal <a href=\"https:\/\/news.bitcoin.com\/kenyan-official-rejects-new-crypto-tax-claims-as-nairobi-tightens-virtual-asset-rules\/\">regulatory fold<\/a>. While the National Treasury views the local banking buffer as a necessary guardrail against potential consumer losses, <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> platforms contend that alternative global custodial frameworks are better suited to manage <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoin<\/a> stability.<\/p>\n<p>The standoff has not halted discussions. <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">Crypto<\/a> industry leaders in Kenya are pushing for continued engagement with regulators, stating that a collaborative approach is necessary to balance investor protection with sector growth.<\/p>\n<p>No deadline has been finalized for the draft rules as consultations between state financial regulators and sector stakeholders continue.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/kenyan-treasury-pushes-30-reserve-requirement-as-stablecoin-firms-warn-of-higher-costs\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Kenya\u2019s National Treasury proposed a mandate forcing stablecoin issuers to hold 30% of reserves in local banks. Crypto platforms warn the rule could trap liquidity and increase remittance costs across Kenya. Industry leaders seek to continue 2026 talks with regulators to balance user protection with sector [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":74970,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74969"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=74969"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74969\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/74970"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=74969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=74969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=74969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}