The International Monetary Fund (IMF) is reportedly pressing Kenya to enforce the Financial Action Task Force (FATF) Travel Rule for cryptocurrency transactions, in a proposal intended to close a gap in the country's implementation of the global standard, according to a report by BitcoinKE (BitKE). The measure would bring Kenya's oversight of virtual asset service providers in line with standards set by the FATF, the global money laundering and terrorism financing watchdog.

The Travel Rule requires virtual asset service providers (VASPs) to transmit information identifying both the sender and the recipient when processing cryptocurrency transfers. The data could include customers' names, account references, physical addresses, or national identification numbers, alongside the corresponding wallet addresses. The requirement mirrors obligations that banks have long met for traditional wire transfers under the same FATF standards.

The IMF recommends incorporating the requirements into Kenya's Virtual Asset Service Provider regulations, or into another appropriate legal instrument, without delay.

The push comes as Kenya's cryptocurrency market expands rapidly. Chainalysis data cited by a local business daily shows that crypto transactions reached approximately KES 740 billion ($5.7 billion) in the year to June 2026, up 38% from roughly KES 505 billion ($3.89 billion) a year earlier. The growth forms part of a broader regional trend: according to the 2026 Chainalysis report, Sub-Saharan Africa's crypto economy grew more than 13% year-on-year, led by South Africa.

Kenya has been under increased FATF monitoring since February 2024 over weaknesses in its anti-money laundering and counter-terrorism financing framework. Jurisdictions under that status work with the FATF to remedy identified shortcomings, with progress reviewed against agreed timelines. The proposal comes amid growing pressure on the country to strengthen its anti-money laundering framework and close the gaps identified under international financial crime standards.

If adopted, the measure would give authorities greater visibility over crypto transfers, although the report draws a distinction between sharing transaction information with receiving platforms and reporting suspicious activity to the Financial Reporting Centre (FRC). The IMF says effective implementation would help exchanges screen transactions against sanctions lists and identify potentially illicit funds.

Kenya's regulators have previously signaled movement in this direction. The government has reportedly sought to implement the Travel Rule by identifying crypto owners in a new VASP bill, while the FATF has called for tougher crypto AML enforcement following the implementation of the Travel Rule. The choice of legal vehicle — Kenya's VASP regulations or another instrument — and the speed with which the country acts on a recommendation framed as needing action "without delay" will be the immediate markers to watch.

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."