- Kenya’s CMA plans blockchain surveillance to monitor crypto transactions across 20+ networks.
- New analytics tools will help detect fraud, sanctions risks, and unlicensed crypto platforms.
- Kenya advances crypto oversight as the CMA prepares to license virtual asset firms.
Kenya’s cryptocurrency regulatory framework is entering its next phase as the country’s securities regulator prepares to strengthen oversight through blockchain surveillance technology. The Capital Markets Authority (CMA) is seeking a blockchain analytics platform capable of tracking transactions across multiple digital asset networks in preparation for supervising virtual asset service providers under the country’s recently enacted crypto law.
The proposed system would enable the regulator to monitor blockchain activity, investigate suspicious transactions, and identify potential compliance breaches as Kenya moves to license crypto businesses for the first time.
CMA Plans On-Chain Monitoring Platform
According to the tender documents, the CMA intends to procure a blockchain intelligence platform capable of analyzing activity across Bitcoin, Ethereum, and at least 20 additional blockchain networks. The system is expected to support both real-time monitoring and retrospective transaction analysis.
The surveillance platform would generate automated alerts for wallets considered high risk, unusually large transfers, coin mixers, darknet-linked addresses, and entities subject to sanctions. It would also screen transactions against sanctions lists maintained by the United Nations and the U.S. Office of Foreign Assets Control.
In addition to identifying suspicious transactions, the software would map wallet relationships, reconstruct transaction histories, trace assets across multiple blockchains, and assign risk scores associated with money laundering, ransomware, fraud, and terrorism financing investigations.
Focus Extends to Exchanges Serving Kenyan Users
The tender also outlines the regulator’s intention to identify the cryptocurrency exchanges most frequently used by Kenyan residents. At the same time, the system would help detect offshore platforms offering services in Kenya without local authorization.
The capabilities described in the documents are similar to those of blockchain analytics platforms developed by companies such as Chainalysis, TRM Labs, and Elliptic, which provide blockchain investigation software to public sector agencies and regulators across multiple jurisdictions.
The planned technology acquisition supports the implementation of Kenya’s Virtual Assets Service Providers Act, which President William Ruto signed into law in October before it came into effect in November. The legislation introduced the country’s first regulatory framework for virtual asset businesses.
Under the law, regulatory responsibilities are divided between the Central Bank of Kenya and the Capital Markets Authority. The central bank oversees payments, stablecoins, and custodial wallet services, while the CMA oversees exchanges, brokers, investment advisers, and tokenization platforms.
Related: Kenya Releases Draft VASP Regulations, Seeks Public Feedback
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