The National Treasury has reportedly proposed a new law that will compel crypto exchanges and firms facilitating digital asset transactions in Kenya to disclose the identities of their customers.
This requirement is contained in the Capital Markets (Amendment) Bill, 2024, which seeks to bring cryptocurrency trading under regulatory oversight. If passed, virtual asset service providers (VASPs) will be required to collect and share customer data, including:
Names
Physical addresses
Contact information, and
Transaction history.
According to the proposed bill, all individuals and firms dealing in crypto assets must maintain records and furnish them to the Capital Markets Authority (CMA) for inspection.
Interestingly, in its June 2025 bulletin, the global financial watchdog, Financial Action Task Force (FATF), issued a new call to action, warning that a large number of countries – including several in Africa – are failing to comply with its crypto guidelines, particularly the so-called ‘Travel Rule.’
REGULATION | FATF Crypto Compliance Checklist Raises Red Flags – Which #African Countries Are Next?
The update serves as a reminder that jurisdictions lagging could face increased pressure or sanctions unless they tighten crypto oversighthttps://t.co/6GK18Fstar @FATFNews pic.twitter.com/tAoOwk7dIw
— BitKE (@BitcoinKE) July 2, 2025
If confirmed, this directive would mean that Kenya is looking to align with the FATF Travel Rule, a global Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulatory requirement issued by the FATF, the international body that sets global standards and provides guidelines for countries and institutions, including Crypto Asset Service Providers (CASPs) like VALR.
The Travel Rule requires crypto asset service providers (CASPs) to collect and share information with other crypto asset service providers and financial institutions that you engage with. The objective of the tougher regulations is to improve transparency in business and provide greater safeguards for consumers.
In South Africa, for example, all regulated Crypto Asset Service Providers (CASPs) entities MUST comply with evolving local and global AML and CTF requirements.
REGULATION | The Travel Rule Takes Effect in South Africa and Regulated Crypto Exchanges Are Complying
Set to go live on April 30 2025, the Travel Rule forces service providers to collect identity info on transactions over R5,000 (~$270)https://t.co/HyniezwDlV @FATFNews pic.twitter.com/uImVMGRGjl
— BitKE (@BitcoinKE) April 30, 2025
The law also mandates VASPs to report suspicious transactions and adopt robust know-your-customer (KYC) and anti-money laundering (AML) measures.
“The amendment is meant to provide a regulatory framework for digital asset service providers and give the CMA powers to license and supervise their activities,” the Bill states.
[TECH] REGULATION | The Kenya Crypto Regulation is Unique and We’ll See It Adopted Across East Africa, Says Yellow Card Senior Legal Counsel: In a recent interview, Edline E. Murungi, Senior Legal Counsel .. https://t.co/9DCRdhWUJQ via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) July 8, 2025
Kenya currently has no formal legal framework governing the cryptocurrency sector, despite the country ranking among the top crypto adopters in Africa. The move follows global trends where governments are tightening regulations around virtual assets to curb illicit financial flows and protect investors.
If enacted, the bill will bring Kenya in line with the Financial Action Task Force (FATF) recommendations on digital assets and could position the country as a more secure destination for blockchain investments.
REGULATIONS | Kenya Invited to Financial Action Task Force (FATF) Working Groups for One Year Amid Crypto Regulation Progress
The Kenyan delegation will be defending the country’s progress to exit the grey list.https://t.co/YoUVcKftOc @FATFNews @FRC_Kenya pic.twitter.com/jJ6sZoKPUA
— BitKE (@BitcoinKE) February 19, 2025
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