Kenya is preparing to end anonymous cryptocurrency trading in one of Africa’s largest digital asset markets as the government pushes for stricter tax regulations requiring exchanges to reveal customer identities and transaction details.
The proposed measures, included in the Finance Bill 2026 currently before Parliament, would require virtual asset service providers to file yearly reports with the Kenya Revenue Authority (KRA) containing customer transaction histories, wallet details, purchase and sale values, and profits generated from crypto trading.
The planned legislation represents one of the boldest efforts by an African government to subject cryptocurrency platforms to reporting obligations similar to those imposed on banks and traditional financial institutions.
Under the draft law, crypto exchanges operating within Kenya would be obligated to verify customer identities and disclose information relating to reportable users and controlling individuals.
The Bill states that every virtual asset service provider must submit an information return to the Commissioner.
Authorities are also seeking tougher penalties for inaccurate disclosures. Companies found submitting false information could face fines of KES 100,000 ($775) for each incorrect entry, imprisonment of up to three years, or both. The same sanctions would apply to omitted information.
If implemented, the rules would greatly reduce the anonymity that has traditionally characterised large parts of the cryptocurrency industry.
Kenya’s latest move comes as governments around the world step up efforts to monitor digital asset transactions, strengthen tax collection systems, and combat money laundering linked to cryptocurrencies.
The proposals closely mirror the Organisation for Economic Co-operation and Development’s Cryptoasset Reporting Framework (CARF), which officially came into effect in January 2026.
The framework requires participating countries to gather and share information on cross-border cryptocurrency transactions.
More than 75 countries, including Singapore, Switzerland, Hong Kong, the United Arab Emirates, Brazil, and South Africa, have already committed to adopting the framework.
Beginning in 2027, tax authorities within participating nations are expected to automatically exchange information collected from cryptocurrency exchanges and digital asset firms.
If Parliament approves the Bill, Kenya would also gain the authority to share crypto-related tax data with foreign governments through international agreements.
The legislation states that Kenya may enter into agreements with other countries for the automatic exchange of information concerning virtual asset transactions.
The proposals highlight the increasing role of digital assets within Kenya’s economy. According to estimates from the Kenya Revenue Authority, cryptocurrency transactions in the country reached KES 2.4 trillion ($18.5 billion) between 2021 and 2022, representing nearly 20% of the country’s gross domestic product during that period.
Stablecoins have gained particular popularity among businesses involved in international trade and cross-border payments.
Blockchain analytics company Chainalysis estimated that Kenyans traded approximately KES 426.4 billion ($3.3 billion) worth of stablecoins in the year ending June 2024, underscoring the growing use of digital assets beyond traditional banking systems.
Kenya already charges a 3% digital asset tax on selected cryptocurrency transactions, but regulators have faced difficulties tracking activity because a large portion of the market operates outside formal banking channels.
The proposed framework would provide tax authorities with direct insight into who is trading crypto assets, how much income they generate, and where the funds are being transferred.
The changes also reflect a wider shift in Kenya’s approach toward cryptocurrency regulation.
For several years, the Central Bank of Kenya warned about risks associated with fraud, money laundering, and illicit financing connected to digital assets.
However, rapid adoption by businesses, traders, and consumers has encouraged regulators to strengthen oversight rather than attempt to completely restrict the sector.
If the legislation is passed, Kenya would join a limited number of African countries, including South Africa and Mauritius, that have adopted stricter cryptocurrency reporting and compliance regulations as governments try to keep pace with the rapidly expanding digital asset economy.