REGULATION | The Kenya Capital Markets Regulator Floats Tender Notice to Procure a Blockchain Analytics System

The Capital Markets Authority of Kenya (CMA Kenya) is moving to strengthen oversight of the country’s virtual asset market by procuring a blockchain analytics platform capable of monitoring crypto transactions in real time marking one of its first major enforcement initiatives since the country’s new crypto law came into force.

The regulator has issued a tender for a Virtual Assets Blockchain Analytics System designed to

• monitor blockchain transactions,
• screen digital wallets against sanctions lists,
• detect suspicious activity, and
• support investigations into financial crimes linked to cryptocurrencies.

The procurement follows the enactment of the Virtual Asset Service Providers (VASP) Act, 2025 which established Kenya’s legal framework for regulating digital assets. Under the law, the CMA oversees virtual asset exchanges, brokers, investment advisers, and asset managers while the Central Bank of Kenya (CBK) supervises stablecoins and payment-related activities.

According to the tender documents, the analytics platform will

• provide regulators with end-to-end visibility into blockchain transactions, wallets, and virtual asset ecosystems,
• conduct real-time anti-money laundering (AML) and counter-terrorism financing (CFT) screening,
• identify high-risk wallets and sanctioned entities,
• detect fraudulent transactions, and
• generate intelligence from both live and historical blockchain data.

The system will also support forensic investigations by

• tracing the movement of digital assets across multiple wallets,
• mapping relationships between addresses,
• reconstructing transaction timelines, and
• producing evidence that can be used in regulatory enforcement actions.

Investigators will be able to:

• monitor specific wallets,
• receive automated alerts on suspicious activity, and
• analyze fund flows across multiple blockchain networks.

Beyond investigations, the platform will integrate with the CMA’s existing regulatory systems, case management tools, and cybersecurity infrastructure to strengthen supervision of licensed and prospective virtual asset service providers. The regulator also plans to train staff in advanced blockchain investigations and intelligence gathering as part of the implementation.

The CMA said the rapid growth of cryptocurrencies and on-chain financial services has created new investment opportunities but also increased risks including

• money laundering,
• terrorism financing,
• fraud,
• market manipulation,
• sanctions evasion,
• tax evasion,
• cyber-enabled scams, and
• illicit cross-border financial flows

that could undermine market integrity and investor confidence.

The analytics platform is expected to shift Kenya’s approach to crypto supervision from reliance on compliance reports submitted by market participants to intelligence-led, on-chain monitoring. Although the legal framework is now in place, no virtual asset service providers have yet been licensed in Kenya, with detailed implementation regulations still being finalized by the National Treasury in collaboration with the CMA and CBK.

The move comes as Kenya continues implementing reforms aimed at strengthening oversight of digital assets and aligning its regulatory framework with international anti-money laundering standards. Analysts say the broader regulatory push could help improve financial integrity while supporting Kenya’s efforts to address concerns raised by the Financial Action Task Force (FATF).

Stay tuned to BitKE for the latest crypto regulatory updates from across Africa.

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

_________________________________________