Blab Crypto
Kenyas Capital Markets Authority Seeks Blockchain Analytics Platform to Strengthen Crypto Oversight
Kenya’s top regulator is tightening its grip on the country’s burgeoning digital‑asset market. The Capital Markets Authority (CMA) has issued a tender for a blockchain analytics platform that will let it monitor transactions across Bitcoin, Ethereum and at least 20 other blockchains in real time and retrospectively.
The bid documents, obtained by Capital FM Africa, outline a system that can generate automated alerts for high‑risk wallets, large transfers, coin mixers, darknet‑linked addresses and sanctioned entities. It will screen activity against United Nations and U.S. Office of Foreign Assets Control (OFAC) sanctions lists, map relationships between wallets, reconstruct transaction timelines, trace funds across chains and assign risk scores for money‑laundering, ransomware, fraud and terrorism financing.
CMA officials say the tool will help them pinpoint the exchanges most used by Kenyans and flag unlicensed offshore platforms that serve the local market. The capabilities mirror those of established blockchain intelligence firms such as Chainalysis, TRM Labs and Elliptic, which sell similar software to governments and regulators worldwide.
The purchase is part of the regulatory framework set out in the Virtual Assets Service Providers Act, signed into law by President William Ruto in October 2025. The act splits oversight between the Central Bank of Kenya, which covers payments, stablecoins and custodial wallets, and the CMA, which regulates exchanges, brokers, investment advisers and tokenisation platforms. The legislation aligns Kenya’s crypto rules with the anti‑money‑laundering standards of the Financial Action Task Force.
No virtual‑asset service providers have been licensed yet. The National Treasury released draft regulations in March, giving existing operators until November 2026 to comply. Kenya is one of Africa’s largest crypto markets: Chainalysis data shows residents received about $19 billion in crypto between July 2024 and June 2025, ranking the country fourth on the continent. More than six million Kenyans are estimated to use digital assets, largely through informal peer‑to‑peer channels.
Kenya is not alone in seeking advanced surveillance tools. In the United States, Immigration and Customs Enforcement recently purchased forensics software from TRM Labs and Chainalysis—both of which already serve the FBI, DEA and IRS. Britain’s HMRC has also engaged TRM Labs to trace suspect transactions.
The CMA’s move reflects a broader trend of regulators adopting technology to enforce compliance in fast‑growing crypto ecosystems. By monitoring on‑chain activity, the regulator aims to deter illicit use of digital assets, protect consumers and facilitate the licensing of legitimate service providers.
The tender process is still underway, and the CMA has not yet announced a winner. Its next steps will include selecting a vendor, negotiating a contract and integrating the platform with its existing compliance infrastructure. Once deployed, the system will allow the CMA to issue real‑time alerts, conduct investigations and enforce the Virtual Assets Service Providers Act.
In the coming months, the CMA will review the draft regulations, hold public consultations and begin the licensing process for virtual‑asset service providers. The outcome of these steps will shape Kenya’s regulatory landscape and determine how effectively the country can curb illicit activity while fostering innovation.
Deploying the platform will be a key milestone in Kenya’s effort to bring its rapidly expanding digital‑asset market under a robust regulatory framework, ensuring that the country can meet international AML standards while supporting the growth of legitimate crypto businesses.
The bid documents, obtained by Capital FM Africa, outline a system that can generate automated alerts for high‑risk wallets, large transfers, coin mixers, darknet‑linked addresses and sanctioned entities. It will screen activity against United Nations and U.S. Office of Foreign Assets Control (OFAC) sanctions lists, map relationships between wallets, reconstruct transaction timelines, trace funds across chains and assign risk scores for money‑laundering, ransomware, fraud and terrorism financing.
CMA officials say the tool will help them pinpoint the exchanges most used by Kenyans and flag unlicensed offshore platforms that serve the local market. The capabilities mirror those of established blockchain intelligence firms such as Chainalysis, TRM Labs and Elliptic, which sell similar software to governments and regulators worldwide.
The purchase is part of the regulatory framework set out in the Virtual Assets Service Providers Act, signed into law by President William Ruto in October 2025. The act splits oversight between the Central Bank of Kenya, which covers payments, stablecoins and custodial wallets, and the CMA, which regulates exchanges, brokers, investment advisers and tokenisation platforms. The legislation aligns Kenya’s crypto rules with the anti‑money‑laundering standards of the Financial Action Task Force.
No virtual‑asset service providers have been licensed yet. The National Treasury released draft regulations in March, giving existing operators until November 2026 to comply. Kenya is one of Africa’s largest crypto markets: Chainalysis data shows residents received about $19 billion in crypto between July 2024 and June 2025, ranking the country fourth on the continent. More than six million Kenyans are estimated to use digital assets, largely through informal peer‑to‑peer channels.
Kenya is not alone in seeking advanced surveillance tools. In the United States, Immigration and Customs Enforcement recently purchased forensics software from TRM Labs and Chainalysis—both of which already serve the FBI, DEA and IRS. Britain’s HMRC has also engaged TRM Labs to trace suspect transactions.
The CMA’s move reflects a broader trend of regulators adopting technology to enforce compliance in fast‑growing crypto ecosystems. By monitoring on‑chain activity, the regulator aims to deter illicit use of digital assets, protect consumers and facilitate the licensing of legitimate service providers.
The tender process is still underway, and the CMA has not yet announced a winner. Its next steps will include selecting a vendor, negotiating a contract and integrating the platform with its existing compliance infrastructure. Once deployed, the system will allow the CMA to issue real‑time alerts, conduct investigations and enforce the Virtual Assets Service Providers Act.
In the coming months, the CMA will review the draft regulations, hold public consultations and begin the licensing process for virtual‑asset service providers. The outcome of these steps will shape Kenya’s regulatory landscape and determine how effectively the country can curb illicit activity while fostering innovation.
Deploying the platform will be a key milestone in Kenya’s effort to bring its rapidly expanding digital‑asset market under a robust regulatory framework, ensuring that the country can meet international AML standards while supporting the growth of legitimate crypto businesses.
