The International Monetary Fund (IMF) has urged Kenya to require cryptocurrency service providers to collect, verify, and share customer identification information with receiving platforms and the Financial Reporting Centre (FRC) strengthening controls against money laundering and terrorism financing.
The proposal seeks to address a gap in Kenya’s implementation of the Financial Action Task Force (FATF) Travel Rule which requires virtual asset service providers (VASPs) to transmit information identifying the sender and recipient when processing cryptocurrency transfers.
CRYPTO CRIME | FATF Calls for Tougher Crypto AML Enforcement Following Travel Rule Implementation
The information could include customers’ names, account references, physical addresses, or national identification numbers, alongside wallet addresses.
The IMF recommends incorporating the requirements into Kenya’s Virtual Asset Service Provider regulations or another appropriate legal instrument without delay.
REGULATION | Kenya Government Reportedly Seeks to Implement ‘The Travel Rule’ by Identifying Crypto Owners in New VASP Bill
The push comes as Kenya’s cryptocurrency market expands.
Chainalysis data cited by a local business daily shows that crypto transactions reached ~KES 740 billion ($5.7 billion) in the year to June 2026, up 38% from ~KES 505 billion ($3.89 billion) a year earlier.
REPORT | Sub-Saharan Africa Crypto Economy Grew Over 13% YoY Led by South Africa, Says 2026 Chainalysis Report
Kenya has been under increased FATF monitoring since February 2024 over weaknesses in its anti-money laundering and counter-terrorism financing framework.
The proposal would also give authorities greater visibility over crypto transfers although the distinction between sharing transaction information with receiving platforms and reporting suspicious activity to the FRC is important. The IMF says effective implementation would help exchanges screen transactions against sanctions lists and identify potentially illicit funds.
The proposal comes amid growing pressure on Kenya to strengthen its anti-money laundering framework and close gaps identified under international financial crime standards.
In 2025, as reported by BitKE, Kenya’s leading criminal investigative body revealed that ‘proceeds of crime are no longer hidden under mattresses; they are laundered through complex corporate structures, layered across global bank accounts, and concealed within real estate or cryptocurrency.
REGULATION | ‘Proceeds of Crime Are Laundered and Concealed Within Real Estate or Cryptocurrency in Kenya,’ Says Kenyan Director of Criminal Investigations (DCI)
Stay tuned to BitKE on crypto regulatory updates in Africa.
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