The Capital Markets Authority (CMA) of Kenya is set to acquire a blockchain analytics tool aimed at monitoring cryptocurrency transactions across major networks. This initiative comes as the country prepares to enforce regulations on licensed virtual asset firms under its new virtual assets law.

Importance of the Monitoring Tool

This system will enhance the CMA's ability to conduct investigations and ensure compliance with regulatory requirements. The tool will support oversight functions that are crucial in combating money laundering and evasion of sanctions. Key features of the tool include:

  • Real-time transaction monitoring for Bitcoin, Ethereum, and over 20 additional networks.
  • Alerts for high-risk wallets, large transactions, and connections to mixers or darknet operations.
  • Automated risk scoring relating to various threats including fraud and terrorism financing.

Framework for Digital Asset Oversight

Kenya's Virtual Assets Service Providers Act, signed into law by President William Ruto in October, creates a comprehensive framework for the regulation of cryptocurrency businesses. The legislation outlines the division of responsibilities between the Central Bank of Kenya, which handles payment services and stablecoins, and the CMA, which regulates exchanges and related firms. Currently, no cryptocurrency company has acquired a license under this framework, but existing operators have until November 2026 to comply with the new rules. The Treasury also released draft regulations earlier this year to facilitate the implementation process.

Future Developments to Watch

The CMA aims to further enhance its regulatory capabilities by identifying cryptocurrency exchanges commonly used by local residents and detecting offshore platforms that operate without proper authorization. As Kenya continues to rank as one of Africa's largest digital asset markets, monitoring developments in the regulatory landscape will be essential, especially with estimations from Chainalysis indicating that the country received around $19 billion in cryptocurrency from July 2024 to June 2025. This expands on the need for effective governance and risk mitigation in a rapidly evolving market.

This material is for informational purposes only and does not constitute financial advice.