Kenya's CMA Seeks Blockchain Analytics to Combat Crypto Crime
In brief
- CMA issued tender for blockchain analytics software tracking Bitcoin, Ethereum, and 20+ other chains in real time.
- Platform generates automated alerts for high-risk wallets, coin mixers, darknet addresses, and sanctioned entities.
- Kenya's crypto law took effect November; no firms licensed yet under the framework.
- Kenya received $19 billion in crypto inflows July 2024–June 2025, ranking fourth in Africa.
Monitoring Scope and Capabilities
The system would track Bitcoin, Ethereum, and at least 20 other blockchains, both in real time and retrospectively. The platform would generate automated alerts for high-risk wallets, large transfers, coin mixers, darknet-linked addresses, and sanctioned entities. Additionally, the system would screen transactions against United Nations and U.S. Office of Foreign Assets Control sanctions lists.
It would also map relationships between wallets, reconstruct transaction timelines, trace funds across chains, and assign risk scores tied to money laundering, ransomware, fraud, and terrorism financing. The described capabilities mirror those of tools sold by blockchain intelligence firms such as Chainalysis, TRM Labs, and Elliptic.
Regulatory Framework and Timeline
The law splits oversight between the Central Bank of Kenya, covering payments, stablecoins, and custodial wallets, and the CMA, which regulates exchanges, brokers, investment advisers, and tokenization platforms. No firms have been licensed yet under Kenya's new crypto framework.
The National Treasury published draft regulations in March, and existing operators have until November 2026 to comply. Kenya's purchase would support the country's Virtual Assets Service Providers Act, part of a broader push to align with anti-money-laundering standards set by the Financial Action Task Force.
Market Context
Kenya's crypto market is substantial and largely informal. Residents received about $19 billion in crypto between July 2024 and June 2025, ranking the country fourth on the African continent. More than six million Kenyans are estimated to use digital assets, much of it through informal, peer-to-peer channels.
The CMA's move aligns with a global trend. The U.S. Immigration and Customs Enforcement moved last year to buy forensics software from both TRM Labs and Chainalysis. TRM Labs and Chainalysis already hold contracts with the FBI, the DEA, and the IRS. Britain's tax authority, HMRC, has brought on TRM Labs to trace suspect transactions.
