This archive report was first published on 19 June 2020.
On Friday, the Capital Markets Authority (CMA) announced the admission of two firms, Pyypl Group Limited and Belrium Kenya Limited, to its Regulatory Sandbox test environment.
These two firms will test their innovations in accordance with the requirements of the Capital Markets Regulatory Sandbox Policy Guidance Notes (PGN).
Pyypl Group Limited, a blockchain-based platform for issuance of debentures among entrepreneurs, has been admitted to test its Pyypl for Entrepreneurs product for 12 months.
The firm is licensed by the Financial Services Regulatory Authority in the United Arab Emirates and has subsidiaries in Bahrain and Kazakhstan, which are active and licensed by the Central Bank of Bahrain and Astana Financial Services Regulatory Authority respectively.
Belrium Kenya Limited has been admitted to test a blockchain-based and shareable know your customer (e-kyc) solution for capital markets intermediaries and investors, a test that will be executed in a period of nine months.
Its parent company, Belfrics Malaysia Sdn Bhd, is a reporting institution with Bank Negara Malaysia.
According to CMA Acting Chief Executive Mr. Wyckliffe Shamiah, the admission of these firms underscores the need for stronger coordination with financial sector regulators and other government agencies to ensure that there are no gaps or overlaps.
‘We are encouraged to note the appetite for the Regulatory Sandbox among fintech firms and innovators within and beyond Kenya’s borders. This underscores the need for stronger coordination with financial sector regulators and other government agencies to ensure that there are no gaps or overlaps,” Shamiah said.
Since the Regulatory Sandbox became operational in March 2019, six companies have been admitted to test their innovations and one company has successfully exited the Regulatory Sandbox and is preparing to roll out the innovation to the wider market.
