IMF urges Kenya to enforce crypto Travel Rule
4.4 Regulation The IMF urges Kenya to enforce the FATF Travel Rule, requiring crypto platforms to collect and share customer data to strengthen anti-money laundering controls and close regulatory gaps.
The International Monetary Fund (IMF) has urged Kenya to enhance its cryptocurrency regulations by enforcing the Financial Action Task Force (FATF) Travel Rule. This rule would require cryptocurrency exchanges and other virtual asset service providers to collect, verify, and share detailed identifying information—such as names, national ID numbers, physical addresses, account references, and wallet addresses—of both senders and recipients involved in digital asset transfers. The collected information would be transmitted to the receiving platform and Kenya’s Financial Reporting Centre, aiming to strengthen anti-money laundering (AML) and counter-terrorism financing (CTF) measures. While Kenya’s current regulations already require customer identification, the IMF recommends an additional step: sharing this data between institutions. These recommendations are intended to address deficiencies highlighted by the FATF, as Kenya seeks removal from the organization’s grey list by April 2027. The IMF emphasizes the need for prompt incorporation of these requirements into Kenya’s legal framework for virtual asset service providers.
