The corporate regulators of Australia and Kenya have today announced the signing of a co-operation agreement to promote fintech innovation.
The Capital Markets Authority of Kenya and the Australian Securities and Investments Commission (ASIC) are working on the expansion of the innovation space in financial services in their respective markets, following the signing of a co-operation agreement to promote fintech development.
The agreement between ASIC and the Capital Markets Authority of Kenya (CMA) has set the foundation for the exchange of information between Australia and Kenya, with parties in agreement to share information on emerging markets trends and regulatory, or ‘regtech,’ issues.
ASIC chairman, Greg Medcraft, said: “Innovation in financial services isn’t confined by national borders. We hope this agreement will help to break down barriers to entry both here and in Kenya”.
“Since ASIC launched its Innovation Hub in 2015, we have seen a surge in requests by fintech start-ups seeking assistance about how to navigate the regulatory requirements.”
The CMA is the latest in a string of regulators across Africa and Asia to announce the development of a regulatory sandbox for fintech. CMA chief executive, Paul Muthaura, said the partnership with ASIC and the backing of the flourishing fintech ecosystem in Australia would help encourage Kenyan start-ups and position Kenya as an innovation hub in the wider African market space.
“We are committed to facilitating innovation in financial services, leveraging Kenya’s positioning in the region,” he said.
“We are keen to share best practices in terms of how to address regulatory issues pertaining to innovation in financial services.”
Muthaura said the CMA had commenced its efforts toward the establishment of a stronger regulatory framework for fintech to encourage innovation in capital markets and facilitate the development of new entrepreneurial efforts across Kenya.