Africa Cracks Down on Crypto Transactions Amid Money Laundering Concerns
African regulators are ramping up oversight of cryptocurrencies to balance innovation with growing concerns over illicit financial flows, money laundering, and investor protection.
South Africa's National Treasury and the South African Reserve Bank (SARB) published a draft Crypto Assets Manual for Cross-Border Activities, proposing stricter reporting requirements for cross-border crypto transactions. The framework seeks to close regulatory loopholes and detect illicit financial flows by establishing clear reporting obligations for authorized crypto asset service providers.
Kenya is investing in surveillance technology before issuing licenses to virtual asset service providers. Under South Africa's proposed framework, crypto asset transfers between domestic and offshore service providers would become reportable to the country's Financial Surveillance Department. Regulators emphasize that these measures are intended to strengthen oversight of cross-border financial activities without recognizing cryptocurrencies as legal tender.
The Capital Markets Authority (CMA) in Kenya is procuring a blockchain analytics system capable of tracking cryptocurrency transactions, identifying suspicious activity, and supporting regulatory enforcement. This investment comes as Kenya begins implementing the Virtual Assets Service Providers (VASP) Act, 2025, which took effect on November 4, 2025.