Block chain, Fintech & Regulations

Innovators have come up with innovative ways within which people can access money, send money, receive money, borrow money or conduct transactions on their mobile phones. With applications like M-pesa and lending platforms such as Tala, Commercial Banks are being slowly edged out of daily transactions and associated fees. 

Should the Central Bank of Kenya introduce the Central Bank Digital Currency and should Kenyans prefer a decentralized way of holding their money i.e by way of cryptocurrency, commercial banks are likely to face a further blow to their bottom line. 

Cryptocurrencies such as Bitcoin are the most high profile applications of these technologies. However, the range of potential applications extends far beyond cryptocurrencies and includes, for example, trade execution and settlement systems, trade finance, supply chain management, asset registration, identity management (including for anti-money laundering and know your client purposes) and corporate governance.

Distributed ledgers, blockchains and smart contracts have the potential to transform business, government and society.

As financial institutions, governments and companies move from research and development to deployment of distributed ledgers, blockchains and smart contracts, they need to consider carefully the legal and regulatory implications of, and risks presented by, these transformative technologies.

However, this transformation is not without risk. Careful legal and regulatory analysis will be required as part of the risk assessment involved in using these technologies.

At MMW Advocates LLP we can help you analyse, manage and mitigate legal and regulatory risks associated with the use of distributed ledgers, blockchains, smart contracts and cryptocurrencies.