The Capital Markets Authority (CMA) is looking to strengthen its oversight of Kenya’s cryptocurrency sector by procuring an advanced blockchain analytics system that will enable real-time monitoring of virtual-asset transactions as the country implements its new regulatory framework.
The proposal follows the enactment of the Virtual Assets Service Providers Act, 2025, which authorizes the CMA to regulate virtual asset exchanges, brokers, asset managers, investment advisers, and other licensed participants operating in Kenya’s digital assets market.
According to tender documents, the regulator wants a system that can track blockchain transactions and screen wallets against sanctions lists.
The same system, the documents indicate, will also help detect fraud and support investigations into suspicious cryptocurrency activities.
The platform will also allow the CMA to carry out real-time anti-money laundering (AML) and counter-terrorism financing (CFT) screening, enabling it to identify high-risk transactions before they develop into more serious financial crimes.
In the tender documents, the authority said, “The overall objective of the assignment is to supply, implement, integrate, operationalize, and maintain a secure, scalable and fit-for-purpose Virtual Assets Blockchain Analytics System to enhance CMA’s capacity to monitor, analyze, investigate, and respond to risks associated with virtual assets and virtual asset service providers.”
The regulator added that the rapid growth of virtual assets and blockchain-based financial services has created new investment opportunities, but it has also introduced significant risks into the market.
Among the issues the CMA flagged are money laundering, terrorism financing, fraud, market manipulation, sanctions evasion, tax evasion, and cyber-enabled scams. The authority said these threats can facilitate cross-border illicit financial flows that may weaken market integrity and erode investor confidence.
To tackle these risks, the proposed system will deliver end-to-end visibility across blockchain transactions, digital wallets, and the broader virtual-asset ecosystem.
The CMA said this will enable it to generate alerts and intelligence using both real-time and historical transaction data. The technology will also support forensic investigations by tracing the movement of virtual assets across multiple wallets, identifying linked entities, and producing evidence that the authority can use in regulatory enforcement actions.
In addition, the blockchain analytics platform will be integrated with the CMA’s internal regulatory systems, case-management tools, and cybersecurity infrastructure to improve how it supervises licensed and prospective virtual-asset service providers.
The authority also plans to train its staff in advanced blockchain investigations and intelligence gathering to strengthen its ability to regulate the fast-growing digital assets sector.
