REGULATION | Kenya Government Reportedly Seeks to Implement ‘The Travel Rule’ by Identifying Crypto Owners in New VASP Bill

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.’

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.

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.

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.

Sign up for BitKE Alerts for the latest updates on crypto regulation in Kenya.

Join our WhatsApp channel here.

_________________________________________