Paul Muthaura, CEO, Capital Markets Authority of KenyaPaul Muthaura, the CEO of Capital Markets Authority of Kenya (CMA Kenya), has stated that cryptocurrency firms will not be considered for the regulatory sandbox created for financial products.
Speaking during a validation exercise on the public views of the new regulations, Muthaura said:
“Blockchain firms will be considered so long as they are not dealing with cryptocurrencies since the CMA’s mandate does not extend to currency. The CMA regulatory sandbox can only serve financial innovations that are directly within the regulatory perimeter of the CMA.”
The regulatory sandbox, which is still undergoing review, aims to offer a controlled environment for fintech firms to innovate and create financial products that protect the interests of consumers.
"Ladies and Gentlemen, many of you may already be asking yourselves whether the Regulatory Sandbox will serve FinTechs across the Financial Services industry in Kenya…." ~ Paul Muthaura C.E. Capital Markets Authority #cmasandbox_PGN #fintech pic.twitter.com/mmFiH9oxu5
— Capital Markets Authority Kenya (@CMAKenya) February 21, 2019
According to Mr. Muthaura, the authority has so far received interest from 70 firms that would like to be sandboxed with the majority of them being in the payment space. Other firms on the list include crowdfunding platforms in the health and real estate (REITS) sectors. Some interested firms in the digital fund management space have also applied.
At the event, CMA announced a Fintech Support facility to act as a one-stop shop for all fintech-related queries touching on the financial sector. This is line with CMA’s mandate in regards to the sandbox to support only capital markets specific fintechs.
CMA Kenya has consulted with the Kenya Blockchain Taskforce on the regulatory sandbox in line with national policy on financial innovation.
"This journey has also seen us making extensive submissions to the Task Force on Blockchain and Internet of Things in order to contribute to the National Policy on Financial Innovation" ~ Paul Muthaura C.E. Capital Markets Authority #cmasandbox_PGN #fintech pic.twitter.com/lKGqejBFgY
— Capital Markets Authority Kenya (@CMAKenya) February 21, 2019
It is now official that both the CMA Kenya and CBK have a similar stand in regards to cryptocurrencies where none of the regulators want to consider cryptocurrencies for regulation. Lets wait and see if this stand will change anytime soon.
