The International Monetary Fund (IMF) has urged Kenya to introduce stricter rules requiring cryptocurrency platforms to collect, verify and share customer identification details whenever users transfer digital assets.
In a technical assistance report published on November 6, 2026, the international lender identified gaps in Kenya’s cryptocurrency regulations and recommended that the government introduce the Financial Action Task Force (FATF) Travel Rule to strengthen the monitoring of digital asset transactions.
The proposal would require virtual asset service providers (VASPs), including cryptocurrency exchanges and digital wallet operators, to transmit identifying information about people sending and receiving cryptocurrency.
The information would include customers’ full names, national identification or passport numbers, physical addresses, account references and cryptocurrency wallet addresses.
The platforms would share the information with one another and Kenya’s Financial Reporting Centre (FRC), the country’s financial intelligence unit responsible for receiving and analysing reports on suspicious financial transactions.
The IMF wants the National Treasury, Central Bank of Kenya (CBK) and Capital Markets Authority (CMA) to incorporate the requirements into Kenya’s existing Virtual Asset Service Providers Regulations, 2026, or another appropriate legal instrument.
The report, titled Kenya: Regulation and Supervision of Crypto Markets and Activities, followed a technical assistance mission conducted jointly by the IMF’s Monetary and Capital Markets Department and Legal Department at the request of Kenyan regulators.
The mission also involved the FRC and examined the country’s regulatory framework, including the supervision of cryptocurrency exchanges, stablecoins and other digital asset activities.
The IMF identified the absence of enforceable information-sharing obligations as a significant weakness in Kenya’s efforts to monitor cryptocurrency transactions.
“A significant gap exists regarding the FATF requirements for the exchange of information with crypto asset transfers (the ‘Travel Rule’),” the report stated.
How the New IMF Cryptocurrency Rule Would Work
Under the proposed Travel Rule, cryptocurrency platforms would have to exchange customer information whenever users transfer digital assets between service providers.
For instance, when a Kenyan sends cryptocurrency from one exchange to another, the originating platform would collect and verify the sender’s identity before transmitting the required details to the receiving platform.
The information would include the sender’s full name, account reference, physical address or national identification number, as well as the cryptocurrency wallet address involved in the transaction.
The receiving platform would also have to establish the identity of the beneficiary and obtain the corresponding account and wallet details.
The IMF wants the platforms to transmit this information securely and immediately, either before or when the cryptocurrency transfer takes place.
The receiving exchange would then use the information to screen transactions against sanctions lists, identify suspicious activity and establish whether funds could be linked to money laundering or terrorism financing.
The IMF explained: “Proper implementation of the Travel Rule will enable CASPs to carry out effective sanctions screening and detect suspicious transactions which should be reported to the FRC.”
The proposal would also require cryptocurrency platforms to submit relevant transaction information to the FRC when authorities request it or when they identify suspicious activity.
Why the IMF Wants Kenya to Introduce the Rule
The IMF’s recommendation comes as cryptocurrency adoption expands in Kenya, creating additional challenges for regulators seeking to monitor financial transactions.
According to blockchain analytics firm Chainalysis, Kenyans transferred approximately Sh740 billion ($5.7 billion) worth of cryptocurrency in the year ending June 2026.
The growth has placed Kenya among Africa’s largest cryptocurrency markets, with users relying on digital assets for investments, cross-border payments, international trade and remittances.
Stablecoins, which are cryptocurrencies designed to maintain a relatively stable value by tracking currencies such as the US dollar, have also gained popularity among Kenyan users.
However, the IMF warned that the absence of mandatory information-sharing requirements makes it difficult for authorities to establish the identities of people behind cryptocurrency transactions.
The concern is particularly significant for peer-to-peer transactions, where individuals exchange digital assets directly without necessarily using a regulated cryptocurrency exchange.
The IMF wants Kenya to strengthen oversight of these transactions and improve monitoring of stablecoin-related activities, including the risks associated with issuers, reserves and trading platforms.
Kenya’s Cryptocurrency Law Already in Place
The IMF’s recommendation comes months after Kenya introduced legislation to regulate cryptocurrency businesses.
President William Ruto assented to the Virtual Asset Service Providers Act, 2025, which commenced in November 2025. The law established a licensing and supervision framework for businesses offering cryptocurrency-related services in or from Kenya.
The Central Bank of Kenya and Capital Markets Authority share responsibility for regulating different categories of virtual asset service providers.
The National Treasury subsequently gazetted the Virtual Asset Service Providers Regulations, 2026, on July 22, providing additional requirements covering licensing, capital, governance and consumer protection.
However, the IMF argues that the existing framework still needs enforceable provisions requiring platforms to exchange customer information during cryptocurrency transfers.
It wants regulators to incorporate the Travel Rule into the regulations without delay. Oraro & Company Advocates+2
IMF Raises Concerns Over Kenya’s FATF Grey Listing
The recommendation also comes as Kenya works to address deficiencies identified by the Financial Action Task Force, the international body responsible for setting standards against money laundering and terrorism financing.
FATF placed Kenya on its increased-monitoring list, commonly known as the grey list, in February 2024 after identifying weaknesses in the country’s financial crime prevention systems.
The listing requires Kenya to implement an action plan addressing gaps in financial intelligence, supervision and enforcement.
The IMF believes introducing the Travel Rule would strengthen the country’s ability to trace cryptocurrency transactions and identify people involved in suspicious financial activities.
The proposal would also bring Kenya’s cryptocurrency oversight closer to international standards governing digital asset transfers.
The proposed changes would mark another step in Kenya’s efforts to regulate its expanding cryptocurrency industry while strengthening oversight of transactions that authorities may otherwise struggle to trace.
