Kenya regulator to buy blockchain analytics to track crypto

Kenya’s Capital Markets Authority is seeking to buy a blockchain analytics platform to monitor Bitcoin, Ethereum and more than 20 other chains and flag fraud, money laundering and sanctions evasion as it implements the Virtual Assets Service Providers Act of 2025.

Tender documents show the regulator wants a system that can track transactions in real time and retrospectively, generate automated alerts for high-risk wallets and large transfers, detect coin mixers and darknet-linked addresses, and screen activity against United Nations and U.S. sanctions lists.

The tool would map links between wallets, reconstruct transaction timelines, trace funds across multiple chains and assign risk scores linked to money laundering, ransomware, fraud and terrorism financing.

According to the tender documents, the regulator plans to use the platform to investigate suspicious activity and enforce compliance as it prepares to license and supervise virtual asset firms under the 2025 law. President William Ruto signed the act in October 2025 and it took effect in November 2025.

Oversight under the law is split: the Central Bank of Kenya will regulate payments, stablecoins and custodial wallets, while the Capital Markets Authority will license and supervise business-to-customer virtual asset services such as exchanges, brokers, investment advisers and tokenization platforms.

Regulatory paperwork indicates the CMA intends to use the analytics tool to identify exchanges most used by Kenyan customers and to detect unlicensed offshore platforms serving the local market. No virtual asset service providers have been licensed yet. The National Treasury published draft regulations in March, and existing operators have until November 2026 to meet licensing and compliance requirements.

Kenya is one of Africa’s larger crypto markets. Between July 2024 and June 2025 residents received about $19 billion in crypto, placing the country fourth on the continent. Market researchers estimate more than six million Kenyans use digital assets, with much of that activity occurring through peer-to-peer channels.

The capabilities the CMA seeks are similar to products offered by blockchain intelligence firms such as Chainalysis, TRM Labs and Elliptic, which supply software to governments and financial regulators. Tender documents do not name preferred vendors or set a delivery timetable.

The CMA’s procurement process will select a supplier and determine how quickly the platform is integrated into licensing and oversight activities. The regulator plans to use the technology alongside other supervisory tools to monitor market activity and support investigations into illicit finance involving digital assets.