The Central Bank of Bahrain (CBB) has gone ahead to prepare new rules targeted at regulating the country’s crypto industry. According to the bank, the preparation of these new rules will help with the establishment of the country as a regional leader in the fintech sector as well as the blockchain industry. This move is also expected to restore Bahrain as a major banking hub in the Persian Gulf.
Central Bank of Bahrain (CBB)
The Central Bank of Bahrain (CBB) has already set a deadline of December 31st, for feedback on the consultation on the regulations. The bank has also published the regulation on its website.
A local news media as further provided a well-detailed break down of the rule coverage. The report states that:
“The regulatory rules cover the implementation of a licensing regime for companies operating cryptocurrency trading platforms.
A supervisory mechanism for the providers of other services related to crypto assets has been developed as well. The draft paper addresses the need to introduce measures to safeguard the interests of customers. It also contains technology standards designed to minimize and manage the cybersecurity risks associated with the nascent industry.”
The News media also quoted the executive director of banking supervision for the Central Bank of Bahrain (CBB) — Khalid Hamad, saying that:
“This regulatory framework will address the demand from the market for these services and the need to recognize this financial innovation.”
Bahrain Fintech Bay
Bahrain Fintech Bay, “a sandbox to boost the development of the fintech industry and increase the number of companies offering related services” was officially launched in Feb 2018. The sandbox has so far attracted about 30 companies working with cryptocurrencies, digital payments, blockchain and financial technologies.
Other Countries Are Not Left Behind
Bahrain is not the only country in the Persian Gulf looking to expand its fintech sector. Countries like Dubai and Abu Dhabi are also making moves designed to place them in the forefront of fintech and blockchain technology, in the gulf.