Kenya deploys blockchain analytics for crypto oversight

Kenya's Capital Markets Authority is deploying blockchain analytics to monitor crypto transactions, detect financial crimes, and enforce compliance under new regulations.

Kenya's Capital Markets Authority is taking significant steps to regulate the country's growing cryptocurrency sector by acquiring a state-of-the-art blockchain analytics platform. This initiative comes after the Virtual Assets Service Providers Act of 2025, which established formal oversight for crypto businesses in Kenya. The new platform will enable real-time and retrospective monitoring of transactions across Bitcoin, Ethereum, and at least 20 other blockchain networks. Its core functions include detecting and flagging suspicious activities such as money laundering, terrorism financing, fraud, market manipulation, and sanctions evasion. Automated alerts will be generated for high-risk wallets, large transfers, coin mixers, darknet-linked addresses, and sanctioned entities. The system will also screen transactions against international sanctions lists, map wallet relationships, trace funds across chains, and assign risk scores to various activities. This marks a major step toward technology-driven enforcement, aiming to ensure compliance and enhance the security of Kenya's rapidly expanding crypto market.