Kenya regulator seeks blockchain surveillance tool as 2025 crypto law takes effect

Kenya's Capital Markets Authority is seeking a blockchain analytics platform that can monitor digital-asset activity in real time and retrospectively across Bitcoin, Ethereum and at least 20 other networks as the country prepares to supervise licensed crypto businesses under its new Virtual Assets Service Providers law. The system would support investigations, map wallet relationships, rebuild transaction histories, trace funds across blockchains and assign risk scores tied to money laundering, ransomware, fraud and terrorism financing. Tender specifications call for automated alerts covering high-risk wallets, unusually large transfers, coin mixers, darknet-linked addresses and entities on United Nations and U.S. Office of Foreign Assets Control sanctions lists. The regulator also wants to identify the exchanges most used by Kenyan residents and detect offshore platforms serving local users without regulatory approval. The procurement adds operational detail to Kenya's move from legislation to enforcement. President William Ruto signed the law in October, and it took effect the following month. Regulatory responsibilities are split between the Central Bank of Kenya, which oversees payment services, stablecoins and custodial wallet providers, and the CMA, which regulates cryptocurrency exchanges, brokers, investment advisers and tokenization platforms. No crypto firms have yet been licensed, draft regulations were released in March, and existing operators have until November 2026 to meet the new compliance requirements. Kenya's Finance Bill 2026 also proposed additional reporting obligations for Virtual Asset Service Providers, including annual reports to the Kenya Revenue Authority on reportable users and controlling persons, alongside information-sharing with foreign tax authorities under international reporting standards. The surveillance push places Kenya alongside regulators globally that are adopting commercial blockchain intelligence tools used by law enforcement and tax agencies. Chainalysis estimated Kenya received about $19 billion in crypto between July 2024 and June 2025, ranking fourth in Africa, and said more than six million Kenyans use digital assets.