Financial crime investigators could improve their ability to trace illicit cryptocurrency transactions by working more closely with licensed virtual asset service providers (VASPs), according to Japhet Gana, Group Head of Transaction Risk and Financial Crimes at Yellow Card.

In an article, Mr Gana said many virtual asset investigations stalled not because of inadequate technology, but because investigators and regulators lacked the practical training needed to obtain and interpret evidence held by virtual asset providers.

He said a recent five-day training programme organised by the United Nations Office on Drugs and Crime (UNODC) in Nairobi, Kenya, brought investigators, regulators and virtual asset providers together to work through simulated investigative scenarios. The experience, he noted, reinforced the need for joint training before major cases expose gaps in cooperation.

Mr Gana cited a July 2026 global review by the Financial Action Task Force (FATF), which found that 83% of surveyed jurisdictions had enacted Travel Rule legislation, up from 73% the previous year. However, he said criminal groups continued to exploit gaps between the existence of regulations and investigators’ ability to apply them effectively.

He explained that licensed virtual asset providers could help connect identity-linked customer information with transaction records on public blockchains, giving investigators evidence that banks or blockchain explorers might not be able to provide independently.

According to him, effective investigations also depend on making precise, legally sound requests and distinguishing between the preservation of records, the disclosure of information and the freezing of assets. Treating these as separate actions, he said, helps reduce delays and improves the chances of obtaining relevant evidence.

Mr Gana said Kenya had made progress through its Virtual Asset Service Providers Act, 2025, and the development of licensing and supervisory requirements aligned with FATF Recommendation 15. He added that he would take the lessons from Nairobi to a forthcoming workshop for GIABA member states in West Africa, where countries are working to strengthen their regulatory capacity.

He urged governments to bring regulators, law enforcement agencies and licensed virtual asset providers into the same training programmes, using practical scenarios to build a shared understanding of the information providers hold, the legal requirements for accessing it and the urgency of investigative requests.

Mr Gana said stronger cooperation would not weaken enforcement but make it more effective. He argued that Africa had an opportunity to establish collaborative approaches to virtual asset regulation and financial crime investigations before gaps in coordination became entrenched.

He said Yellow Card was advocating proactive, joint capacity-building to improve cooperation between the private sector and public authorities, adding that virtual asset providers should be treated as investigative partners rather than barriers to evidence.