Kenya: Market Regulator Plans to Monitor Over 20 Blockchains to Track Crypto Crime

Kenya is taking a decisive step forward in crypto regulation. The country’s Capital Markets Authority (CMA) has just issued a formal request for proposals to acquire a blockchain analytics tool capable of monitoring more than 20 networks simultaneously.

The objective is clear: to detect fraud, money laundering, and sanctions evasion in a rapidly expanding crypto market. This initiative falls under Kenya’s new crypto law and could set a precedent across the African continent.

Behind this technical move lies a far broader regulatory ambition — with real, concrete implications for industry players operating across East Africa.

The CMA Wants Tools Worthy of the World’s Top Regulatory Agencies

The Capital Markets Authority of Kenya has published a formal request for proposals to acquire a blockchain intelligence solution. The requirements are ambitious: the tool must cover more than 20 blockchains, including Bitcoin, Ethereum, and the major chains used in peer-to-peer transactions across sub-Saharan Africa.

In practical terms, the platform must be able to trace suspicious fund flows, identify wallets linked to sanctioned entities, and detect typical money laundering patterns — such as layering and the use of mixers. This type of tool is already used by regulators such as the U.S. SEC and France’s AMF, through solutions like Chainalysis, Elliptic, and TRM Labs.

The CMA has made clear that this tool is directly tied to the enforcement of the Virtual Asset Service Providers Act, Kenya’s recently adopted digital assets law. This legislation requires crypto exchanges and service providers to comply with strict obligations around anti-money laundering (AML) and know your customer (KYC) standards.

Africa’s Crypto Market Under Growing Regulatory Pressure

Kenya is far from a marginal player in the African crypto ecosystem. According to Chainalysis data, the country consistently ranks among the top ten global markets for cryptocurrency adoption by GDP-adjusted volume. Peer-to-peer transfers — particularly via stablecoins — are massive, driven by a young, digitally connected, and largely unbanked population.

It is precisely this rapid adoption that also attracts bad actors. Crypto scams, Ponzi schemes, and unregulated platforms have proliferated in recent years, causing significant losses for local investors. The CMA is therefore looking to close a structural gap in on-chain surveillance.

Kenya’s initiative is part of a broader continental trend. Nigeria, South Africa, and Ghana have all strengthened their crypto regulatory frameworks throughout 2023 and 2024. Africa is fast becoming a regulatory laboratory worth watching closely, with approaches that combine financial inclusion with systemic risk control. For exchanges and projects active in the region, compliance is no longer optional — it is a condition of market access.