Kenya's Capital Markets Authority (CMA) has issued a request for information to identify a service provider capable of monitoring cryptocurrency transactions on the blockchain, according to a notice published on July 7, 2026. The move signals a significant step in the country's efforts to formalize oversight of digital assets, which have seen widespread adoption despite a previous lack of a regulatory framework.
The proposed surveillance tool would analyze transactions on public blockchains to detect market manipulation, insider trading, and other illicit activities, the CMA notice stated. This initiative comes as part of a broader regulatory push that includes the recent publication of draft rules for virtual asset service providers (VASPs) by the National Treasury. The proposed VASP regulations would require companies offering crypto services to obtain licenses from the CMA.
Parallel to the CMA's surveillance plans, Kenya's National Treasury has introduced a specific requirement for stablecoin issuers. Under the draft Capital Markets (Virtual Assets Service Providers) Regulations, 2026, entities issuing fiat-referenced stablecoins must hold a minimum of 30 percent of their reserve assets in liquid form within Kenya's domestic banking system. The remaining reserves can be held in other secure and liquid assets, as reported by industry publication Stablecoin Insider.
Industry participants have expressed concern that the local reserve mandate could increase operational costs and create barriers to entry. In comments to Stablecoin Insider, some stakeholders warned that the rule might lead to higher costs for end-users, potentially stifling innovation in a market where mobile money platforms like M-Pesa have already driven significant financial inclusion. The requirement is seen as part of a wider trend among emerging market regulators seeking to maintain monetary control and ensure consumer protection in the digital asset space.
The dual regulatory actions—surveillance for oversight and local banking for reserves—reflect Kenya's attempt to balance innovation with risk management. The country has been a notable hub for peer-to-peer cryptocurrency trading in Africa, even as its central bank maintained a cautious stance for years. The current approach suggests a shift from outright discouragement to controlled integration within the formal financial system.
Analysts note that the success of these measures will depend on their final implementation and the CMA's capacity to effectively utilize the surveillance technology. The request for information period allows potential vendors to detail their solutions before a formal tender process. The development places Kenya among a growing number of African nations, including Nigeria and South Africa, that are actively crafting detailed regulatory regimes for cryptocurrencies and related services.