Kenya’s capital markets regulator is moving to arm itself with advanced blockchain surveillance technology as the country rolls out its first comprehensive crypto regulatory framework.
According to tender documents reviewed by Capital FM Africa, the Capital Markets Authority (CMA) is seeking a blockchain analytics platform capable of monitoring Bitcoin, Ethereum and at least 20 other blockchains in real time and retrospectively. The tool would generate automated alerts for high‑risk wallets, large transfers, coin mixers, darknet‑linked addresses and sanctioned entities, and would screen transactions against United Nations and U.S. Office of Foreign Assets Control (OFAC) sanctions lists.
Beyond simple flagging, the platform is expected to map wallet relationships, reconstruct transaction timelines, trace funds across chains and assign risk scores tied to money laundering, ransomware, fraud and terrorism financing. The CMA also wants the system to identify the exchanges most used by Kenyans and to detect unlicensed offshore platforms serving the local market — capabilities that mirror products offered by blockchain intelligence firms such as Chainalysis, TRM Labs and Elliptic.
The tender is being floated as Kenya implements the Virtual Assets Service Providers Act, signed by President William Ruto in October and effective from November. The law creates a split supervisory model: the Central Bank of Kenya will oversee payments, stablecoins and custodial wallets, while the CMA will regulate exchanges, brokers, investment advisers and tokenization platforms. The move is part of a broader push to align Kenya with Financial Action Task Force (FATF) anti‑money‑laundering standards.
No virtual asset service providers have been licensed under the new regime yet. The National Treasury published draft regulations in March, and existing operators have until November 2026 to meet the new compliance requirements.
Kenya is already a major crypto market in Africa. Chainalysis data shows residents received roughly $19 billion in crypto between July 2024 and June 2025, placing Kenya fourth on the continent. Industry estimates put crypto users in the country at more than six million, with a large share of activity occurring through informal peer‑to‑peer channels — a factor that regulators say heightens the need for stronger surveillance tools.
This procurement follows a global trend: U.S. agencies, including Immigration and Customs Enforcement, moved last year to acquire blockchain forensics tools from TRM Labs and Chainalysis, firms that also contract with the FBI, DEA and IRS. Britain’s HMRC has similarly engaged TRM Labs to help trace suspect transactions. Kenya’s tender signals that regulators here are seeking comparable capabilities as they step up oversight of a fast‑growing digital asset ecosystem.
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