Regulation in the Blockchain and crypto space is inevitable and coming very soon. To enable this, Capital Markets Authority is setting up a sandbox and with it comes a sandbox policy.
The Fintech Sandbox Policy aims to regulate how financial startups and innovators bring their products to the Kenyan market and is expected to be ready by the end of July, says the CEO of Capital Markets Authority of Kenya, Paul Muthaura.
Speaking to Bitcoin KE during the Finnovation Live event, Mr. Muthaura revealed that CMA has looked at how other countries have implemented a sandbox policy before coming up with the new policy framework.
A Proposed Clearing House
According to the CEO, the policy looks at the nature of the products and the inherent risks. The authority is looking to work with other financial regulators in the country in order to look at other aspects of the technology including payment, insurance, and pension components.
Mr. Muthaura also revealed a possible establishment of a clearing house or contact point so that any player in the fintech space can engage a team to resolve any issues or challenges that may come up. Whether its around payment or pension, the clearing house will provide a suite of services to help fintechs be ready for market.
The authority is looking to engage the first fintechs immediately the policy is ready.
About Capital Markets Authority of Kenya
The Capital Markets Authority of Kenya (CMA), is an independent government regulating agency responsible for supervising, licensing and monitoring the activities of market intermediaries, including the stock exchange, and the central depository and settlement system and all the other persons licensed under the Capital Markets Act of Kenya. The Capital Markets Authority (CMA) provides regulation for the financial services sector by providing guidelines for the asset allocation.