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#fintechpic.twitter.com/mmFiH9oxu5
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.
"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#fintechpic.twitter.com/lKGqejBFgY