Kenya’s crypto industry is facing a crossroads. New draft regulations aim to bring oversight and investor protection, but industry groups are warning that these rules could push local startups offshore.
The concern is straightforward: high capital requirements and strict licensing make it harder for smaller teams to operate within Kenya. While the rules are intended to strengthen the market, they may unintentionally slow innovation and drive talent abroad.
This highlights a larger challenge for emerging markets: how to balance regulation with growth. Startups need clarity and support, not barriers that force them to look elsewhere.