2024

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<p>Kenya has moved to procure a blockchain surveillance platform capable of tracking transactions across more than 20 blockchain networks as the country prepares to supervise licensed crypto businesses under its new virtual assets law.</p>
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   <li>Kenya plans to deploy blockchain surveillance software as it prepares to regulate licensed crypto businesses.</li>
   <li>The proposed platform would track transactions across more than 20 blockchains and flag suspicious wallets and transfers.</li>
   <li>The move follows Kenya’s new virtual asset law and proposed reporting rules for crypto service providers.</li>
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<p>According to tender documents <a href="https://capitalfm.africa/new-cma-platform-targets-crypto-crime-illicit-transactions/" rel="noopener noreferrer nofollow">reviewed</a> by Capital FM Africa, Kenya’s Capital Markets Authority (CMA) is seeking an advanced blockchain analytics system that can monitor digital asset activity in both real time and retrospectively.&nbsp;</p>
<p>The proposed platform would support regulatory investigations, identify suspicious transactions, and strengthen compliance oversight as the country’s crypto licensing framework moves toward implementation.</p>
<p>Under the tender specifications, the system must support Bitcoin, Ethereum, and at least 20 other blockchain networks. It would generate automated alerts for high-risk wallets, unusually large transfers, coin mixers, darknet-linked addresses, and entities listed on sanctions databases maintained by the United Nations and the U.S. Office of Foreign Assets Control.</p>
<p>The regulator also wants software capable of mapping wallet relationships, rebuilding transaction histories, tracing funds across multiple blockchains, and assigning risk scores linked to money laundering, ransomware, fraud, and terrorism financing. In addition, the CMA plans to use the platform to identify the cryptocurrency exchanges most frequently used by Kenyan residents and detect offshore platforms serving local users without regulatory approval.</p>
<h2 class="wp-block-heading" id="surveillance-tools-to-support-new-crypto-rules">Surveillance tools to support new crypto rules</h2>
<p>The surveillance purchase comes after Kenya introduced its first comprehensive legal framework for digital assets. President William Ruto <a href="https://crypto.news/kenya-ushers-crypto-into-the-regulatory-fold-with-new-bill/" rel="noopener noreferrer nofollow">signed the Virtual Assets Service Providers Act</a> into law in October, with the legislation taking effect the following month.</p>
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<p>The law divides regulatory responsibilities between the Central Bank of Kenya and the CMA. While the central bank oversees payment services, stablecoins, and custodial wallet providers, the CMA is responsible for regulating cryptocurrency exchanges, brokers, investment advisers, and tokenization platforms as Kenya aligns its regulatory framework with anti-money laundering standards set by the Financial Action Task Force.</p>
<p>Although the legal framework is already in force, no crypto firms have received licences so far. The National Treasury released draft regulations in March, and existing operators have until November 2026 to meet the new compliance requirements.</p>
<p>Earlier this year, Kenya’s Finance Bill 2026 <a href="https://crypto.news/kenyas-finance-bill-2026-tightens-crypto-reporting-and-digital-payment-taxes/" rel="noopener noreferrer nofollow">proposed additional reporting obligations</a> for Virtual Asset Service Providers. Under the proposal, crypto firms would submit annual reports to the Kenya Revenue Authority containing information on reportable users and controlling persons, while the country would also be able to exchange virtual asset transaction data with foreign tax authorities under international reporting standards, according to an analysis published by KPMG Kenya.</p>
<h2 class="wp-block-heading" id="kenya-joins-global-regulators-using-blockchain-analytics">Kenya joins global regulators using blockchain analytics</h2>
<p>The capabilities outlined in the CMA’s tender closely match commercial blockchain intelligence platforms offered by companies including <a href="https://crypto.news/south-korean-police-tap-chainalysis-to-fight-north-korea-crypto-theft/" rel="noopener noreferrer nofollow">Chainalysis</a>, <a href="https://crypto.news/trm-labs-north-korea-linked-hackers-drive-76-of-2026-crypto-thefts/" rel="noopener noreferrer nofollow">TRM Labs</a>, and <a href="https://crypto.news/ai-deepfakes-are-cryptos-biggest-threat-bitget-slowmist-elliptic-warn/" rel="noopener noreferrer nofollow">Elliptic</a>, which supply transaction monitoring software to regulators and law enforcement agencies in several countries.</p>
<p>Kenya remains one of Africa’s largest cryptocurrency markets. According to Chainalysis, users in the country <a href="https://www.chainalysis.com/blog/subsaharan-africa-crypto-adoption-2025/" rel="noopener noreferrer nofollow">received</a> roughly $19 billion worth of crypto between July 2024 and June 2025, placing Kenya fourth on the continent. The report also estimated that more than six million Kenyans use digital assets, with a significant share of activity taking place through peer-to-peer trading channels.</p>
<p>Similar blockchain monitoring tools are already being used elsewhere. In the United States, Immigration and Customs Enforcement moved last year to <a href="https://www.globalgovernmentfinance.com/hmrc-trm-labs-cryptoasset-investigation-services/" rel="noopener noreferrer nofollow">acquire forensic software</a> from TRM Labs and Chainalysis, while both companies already provide services to agencies including the FBI, DEA, and IRS. Britain’s tax authority, HMRC, has also contracted TRM Labs to assist in tracing suspicious cryptocurrency transactions.</p>
<p>Read more: <a href="https://crypto.news/bitmine-buys-another-70m-in-eth-as-treasury-nears-5-of-supply/" rel="noopener noreferrer nofollow"> Bitmine buys another $70M in ETH as treasury nears 5% of supply </a></p>

Kenya moves to deploy blockchain analytics before crypto licensing begins

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