The Capital Markets Authority has welcomed Belrium Kenya and Pyypl Group Limited in its regulatory Sandbox. The entry of the two companies brings the number of firms in the Sandbox to six.
Firms in the CMA sandbox include CDSC, Pezesha Africa Limited, Innova Limited, Belrium Kenya, Pyypl Group Limited, and an undisclosed firm. One company already exited the environment to test its innovation in the market.
Belrium will test its blockchain-based innovations surrounding sharable know-your-customer (KYC) solutions. Tests for the solution built for capital market intermediaries and investors will run for nine months. Belrium is a subsidiary of Belfrics Malaysia Sdn Bhd, a reporting institution with the Bank Negara Malaysia.
On the other hand, Pyypl Group will test a blockchain-based platform for issuing unsecured bonds among entrepreneurs. Pyypl is licensed by the securities market regulator in the UAE. It also has active subsidiaries in Bahrain and Kazakhstan.
The two companies’ entry into the Sandbox called for cross-border cooperation with other regulators to verify their applications.
CMA’s acting CEO Wycliffe Shamiah commended the admission, calling for coordination between financial sector regulators and other agencies.
“We are encouraged to note the Regulatory Sandbox’s appetite 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. Additionally, such coordination will put in place scalable solutions touching on multiple sectors.”Wycliffe Shamiah
The aim of the regulatory Sandbox is to allow companies to test their innovations with minimal regulatory interference.