Kenya's Capital Markets Authority Wants Blockchain Tool to Combat Crypto Crime

The Capital Markets Authority (CMA) of Kenya is actively seeking to purchase a blockchain analytics platform to oversee the fast-evolving crypto market in the country. This initiative aims to enhance its ability to monitor various digital transactions under the framework of the recently enacted Virtual Assets Service Providers Act of 2025.

The tool is designed to track Bitcoin, Ethereum, and at least 20 additional blockchains, helping identify fraudulent activities, money laundering, and potential terrorism financing. It will enable the regulator to flag high-risk transactions and adhere to compliance standards by generating alerts for transactions involving high-risk wallets and connections to darknet or sanctioned entities.

This move is significant as it marks Kenya's formal step into regulating its crypto sector, enhancing oversight capabilities following the establishment of its comprehensive crypto framework. The new law, signed by President William Ruto, divides regulatory responsibilities between the Central Bank of Kenya, which oversees payment systems, and the CMA, responsible for exchanges and brokers.

The capabilities of the proposed blockchain surveillance system are similar to those offered by established blockchain intelligence firms such as Chainalysis and TRM Labs, which provide similar services globally. With this new tool, the CMA intends to monitor crypto activities more effectively, including identifying which exchanges Kenyans are utilizing and detecting unlicensed offshore platforms in the local market.

The CMA's move highlights an increasing acknowledgment of the need for oversight in the crypto space as it becomes more mainstream. As the regulatory landscape evolves, monitoring tools will play a crucial role in ensuring compliance and mitigating risks associated with digital assets.