In a recent interview, the CEO of CentBee has revealed the value that comes from getting sandboxed in South Africa.
One of the key benefits highlighted was the opportunity to engage deeply with operations with regulators and helping influence regulation in a more crypto-friendly way.
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CentBee is one of only 6 fintech firms to be accepted into the South African regulatory sandbox. Over 50 fintechs had applied for the sandbox license.
CentBee is one of the few blockchain-based companies that are currently testing crypto products at the IFWG sandbox. CentBee is testing Minit Money – a crypto-focused remittance product between South Africa and other African countries.
Centbee uses Bitcoin SV as the blockchain underpinning its offering due to its low transaction costs, fast transaction speeds, and the fact that it is a reliable open-source protocol.
Transactions on Bitcoin SV cost a cent.
Speaking to Bitcoin Association, Angus Brown, CEO, CentBee, said:
“One of the benefits of the ‘regulatory sandbox’ is the opportunity to engage deeply with key operational people working inside the regulators.
‘Some of these people have not been exposed to crypto – so this is an opportunity to educate them and dispel the myths that still persist.”
– CEO, CentBee
South Africa is home to a significant population of migrant workers who constantly send money back home across Africa. As a result, remittance services like Minit Money are becoming essential financial infrastructures.
Speaking about the insights gained from being sandboxed, Angus said:
“Being inside the “sandbox” has given us deeper insight into the true objectives of regulators. In many cases this is simply a desire to be able to measure the financial flows, to understand the impact on the sovereign’s GDP and balance of payments.
“There are fortnightly meetings and frequent discussions which allow us to understand the specific objectives of each regulator and the systems they use to monitor financial institutions.”
– CEO, CentBee
Important aspects of the sandbox that Angus highlighted include:
- Maintaining a good relationship with the regulator
- Providing ongoing education to the regulator
- Ability to pinpoint unintended consequences of proposed regulations to the regulator
- Advising he regulator on where to perhaps adjust draft legislation to be both customer-friendly and less onerous on crypto firms
- Providing detail reporting to enable the regulator publish reporting standards to crypto firms
- Educating the regulator on how seriously crypto firms take KYC obligations as opposed to the current view of pure anonymity
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RECOMMENDED READING: Capital Markets Authority of Kenya Highlights the Challenges of Sandboxing Crypto and Blockchain Solutions in Kenya
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