The Capital Markets Authority (CMA) is set to roll out the Fintech Sandbox Policy by the end of July 2018 according to its chief executive Paul Muthaura.
The policy will regulate fintech firms, including start-ups in the cryptocurrency space, that introduce their products in the Kenyan market.
Speaking at a recent forum on Fintech, Mr Muthaura said the Authority has benchmarked with consulted policies implemented in other countries in order to create a regulatory policy framework for the country.
He also said the Authority is ready to work with other relevant financial regulators to regulate other areas where technology is being used such as payments and insurance.
Earlier this year, the CMA mentioned that it would create a sandbox model as it issued a warning against initial coin offerings (ICOs).
“We intend to use the Fintech Sandbox Framework to create a [facilitation] environment for unrestricted (public/retail) issuance to occur with an appropriate level of oversight,” said Mr Muthaura.
Setting Up a Clearing House
Mr Muthaura also said the Authority will set up a clearing house/contact point that will enable stakeholders in the fintech sector to engage with a team to solve any arising challenges. The clearing house will also offer a a range of services to help fintech companies to be prepared for the market.
Once the policy is ready, the Authority will engage the first fintech companies immediately.