Regulatory Sandbox: What it Could Mean for Kenya

Wednesday, August 22, 2018

Kenya’s Capital Markets Authority (CMA) is currently working on a regulatory sandbox in collaboration with the relevant stakeholders, according to its latest soundness reports. This comes at a time when the country is experiencing a growth in mobile lending, cryptocurrency use, and recommendations to apply blockchain technology in various sectors.

The Consultative Group to Assist the Poor (CGAP) defines a regulatory sandbox as “a framework set up by a regulator that allows fintech startups and other innovators to conduct live experiments in a controlled environment under a regulator’s supervision.” This means that entrepreneurs will have a chance to innovate while regulators ensure that consumers remain protected.

CMA is already in talks with some local players that includes BitPesa, Nailab, Point 50 Capital, and MyCenti among others.

Photo courtesy of fsecart.

Source: Bitcoin Kenya (link opens in a new window)

blockchain, cryptocurrency, fintech, regulations, startups