REGULATION | Blockchain Tokenization Platform, Yeshara Tokens, Gets Admitted into the Capital Markets Authority of Kenya Regulatory Sandbox

The Capital Markets Authority of Kenya (CMA Kenya) has admitted Yeshara Tokens Limited into the Capital Markets Authority Regulatory Sandbox to test Yeshara Tokens, an innovative blockchain-enabled real estate tokenization platform.

Yeshara Tokens is the latest blockchain product to be admitted into the regulatory sandbox for a period of 12 months. During this period, Yeshara Tokens will be required to undertake the following regulatory sandbox requirements:

• Adhere to the proposed testing and customer acquisition plan
• Develop an exit roadmap from the sandbox and a commercial rollout of the product
• Conduct quartely regular product reviews and risk management framework that include emerging risks and factors
• Provide monthly updates to the Sandbox Review Committee on the progress made, challenges, and opportunities
• Adhere to the AML/CFT/CPF framework under the PCAML Act, the PT Act, and othe relevant regulations
• Maintain records of all financial transactions, key milestones, data, and investors
• Adhere to the general Laws of Kenya and seek necessary regulatory approvals should it wish to developer additional product features
• Seek the Authority’s no objection prior to acquisition and tokenization of any property, giving granular details of the particulars of the property and prospective investors into the property
• Submit a final report to the Authority at the end of the testing period

Yeshara Tokens seeks to ‘enhance retail market participation in capital markets products and enhance this participation through tokenization of real assets.’

In 2019. CMA Kenya anoounced that it will be accepting non-crypto blockchain firms intto the sandbox.

In 2022, the Chairman of CMA Kenya said that the authority would be accommodating crypto and blockchain startups into its sandbox as well. However, no blockchain startup had been onboarded onto the sandbox until recently.

In 2021, the regulator disclosed that out of 24 applications submitted to the sandbox since March 2019, at least 9 have been related to blockchain technology and tokenization of real estate.

However, in this article by BitKE, CMA admitted that they had faced several challenges with blockchain firms in the sandbox.

Yeshara Tokens joins 4 other blockchain-based products to be admitted into the CMA Kenya regulatory sandbox, which includes:

• AlphaBloq
• Belrium Kenya
• Pyypl
• OwnMali