Regulation may filter firms at entry, but credibility is earned after something goes wrong. The stronger test is whether suspicious flows can be reconstructed, assets preserved without losing value or evidentiary traceability, and results fed back into licensing and supervision. Which African regime is closest to building that enforcement-to-supervision loop rather than treating authorization as the endpoint?
I agree with the position on credibility being earned through a crisis cycle. However, it can also be signalled in emerging markets by successfully going through a licensing/authorisation process that tests compliance policies, operations, processes, and technology. For instance, the requirement that operators have a recourse mechanism when customers experience poor service is invaluable in an emerging ecosystem. Your larger point about regimes building the enforcement-to-supervision is really important, and I think some Central Banks and Capital Market Authorities in Nigeria, South Africa, Kenya and Ghana are implementing frameworks that have this structure.
Regulation may filter firms at entry, but credibility is earned after something goes wrong. The stronger test is whether suspicious flows can be reconstructed, assets preserved without losing value or evidentiary traceability, and results fed back into licensing and supervision. Which African regime is closest to building that enforcement-to-supervision loop rather than treating authorization as the endpoint?
I agree with the position on credibility being earned through a crisis cycle. However, it can also be signalled in emerging markets by successfully going through a licensing/authorisation process that tests compliance policies, operations, processes, and technology. For instance, the requirement that operators have a recourse mechanism when customers experience poor service is invaluable in an emerging ecosystem. Your larger point about regimes building the enforcement-to-supervision is really important, and I think some Central Banks and Capital Market Authorities in Nigeria, South Africa, Kenya and Ghana are implementing frameworks that have this structure.