Key Insights
- Crypto regulation in Kenya takes a step forward with a focus on blockchain surveillance technology prior to license issuance.
- The new system will keep an eye on over 20 blockchain networks for fraud, money laundering and sanctions violations.
- Compliance and transaction monitoring will be more stringent for crypto companies looking to get a license.
As the Capital Markets Authority (CMA) contemplates bolstering its regulatory framework for digital assets, blockchain surveillance is making its way from policy to implementation in Kenya. The regulator issued a tender on July 7 for an advanced monitoring platform that will track transactions across more than 20 networks, marking one of the country’s biggest steps toward enforcing its new crypto framework.
Although Kenya’s Virtual Asset Service Providers Act took effect in November 2025, regulators have not licensed any crypto firms. The new procurement shows the Capital Markets Authority is building technical capabilities before the final implementing regulations arrive from the National Treasury.
Kenya prepares technical infrastructure before licensing
The Capital Markets Authority wants a blockchain analytics platform capable of monitoring Bitcoin, Ethereum, and at least 20 additional networks in real time and through historical transaction analysis. Tender documents show the software must detect suspicious transfers, screen wallets against international sanctions databases, and identify links to darknet marketplaces, ransomware, fraud, terrorism financing, and money laundering.
The platform must also reconstruct transaction histories, map wallet relationships, trace assets across different networks, and assign risk scores to potentially illegal activity.
In addition, the regulator plans to identify cryptocurrency exchanges most frequently used by Kenyan residents. The software will also help detect offshore trading platforms serving local users without regulatory approval.
The procurement is in line with the passage of the Virtual Asset Service Providers Act in Kenya. The bill was approved by Parliament in October 2025, and came into force on Nov. 4, 2025. However, the National Treasury continues to draft the operational regulations needed before licensing begins.
Key regulatory milestones
| Development | Status |
|---|---|
| VASP Act approved | October 2025 |
| Law became effective | Nov. 4, 2025 |
| CMA surveillance tender | July 7, 2026 |
| Licensing of crypto firms | Not yet started |
| Existing firms compliance deadline | November 2026 |
Oversight model separates responsibilities
The crypto regime in Kenya has been structured to divide the supervisory responsibilities between two regulators.
Payment services and custodial wallet providers, stablecoins are supervised by the Central Bank of Kenya. In the meantime, the Capital Markets Authority is overseeing cryptocurrency exchanges, brokers, tokenization platforms, and investment advisers.
By the end of last year, the Finance Bill 2026 was tabled adding more reporting requirements for VASPs. The idea is for entities to report to Kenya Revenue Authority on reportable users and controlling persons each year. The framework also provides for information exchange with foreign tax authorities in accordance with international reporting requirements.
The planned blockchain monitoring system supports Kenya’s wider effort to align digital asset supervision with anti-money laundering standards promoted by the Financial Action Task Force.
Industry takeaways
- Regulators are investing in surveillance technology before issuing crypto licenses.
- Compliance expectations for exchanges will become significantly more demanding.
- Offshore platforms serving Kenyan users could face greater regulatory scrutiny.
Global surveillance trend reaches Africa
Kenya joins a growing list of jurisdictions using advanced blockchain intelligence to supervise digital assets.
Companies including Chainalysis, Elliptic, and TRM Labs already supply similar technology to regulators, financial institutions, and law enforcement agencies across North America, Europe, and Asia. Agencies in the United States, including the FBI, DEA, IRS, and Immigration and Customs Enforcement, already use comparable forensic tools. Britain’s tax authority has also contracted blockchain analytics providers to trace suspicious cryptocurrency transactions.
The investment marks Kenya’s growing presence in the digital asset economy in Africa. According to Chainalysis, Kenyans got about $19 billion worth of cryptocurrency from July 2024 to June 2025. More than six million Kenyans are active on digital assets, including peer-to-peer trading, was also estimated in the report.
Compliance rules could change the market
The need for surveillance could affect preparations for crypto companies to go through the licensing process in Kenya.
There might be a benefit in large exchanges that already have compliance systems in place, as they are already running compliance systems in multiple jurisdictions for transaction monitoring and screening for sanctions. As the regulators impose more stringent reporting and monitoring requirements, smaller companies may be required to pay more to meet compliance.
The choice of provider of the blockchain analytics platform could also impact the technical specifications used in Kenya’s final regulations. The decision may result in a change to the way licensed firms are currently monitoring transactions, assessing risks, and fulfilling their supervisory requirements.
The Kenyan procurement is thus not just about the technology. It indicates that regulators are laying the groundwork for the operations of the licensed crypto enterprises, market supervision, and enforcement of a structured regulatory regime for the cryptocurrency sector in the country.
