In its bid to secure its position in the middle-east crypto space, the Central Bank of Bahrain has recently rolled out a regulatory sandbox aimed at allowing crypto startups and blockchain companies operate in the country pending the release of a concrete regulatory framework.
Central Bank of Bahrain Delayed Regulatory Framework
Last year, the central bank of Bahrain drafted some proposals directed at regulating crypt asset services. This proposal has since being under deliberations and consultations from different industry expert is currently ongoing. As a result of this delay in coming up with a solid digital assets regulatory frame, the central bank’s new sandbox will give crypto related companies the chance to work within the country on a trial basis. This trial is expected to last about nine months.
According to a business manager at Bahrain’s Economic Development Board, the sandbox will enable firms “to test their solution on a limited number of users, with a limited number of transactions.” Buhejji continued that: “the initiative is intended to expedite new companies’ entrance into the market.”
So far, only 28 companies have been approved for the sandbox. One of these companies includes SprinkleXchange — a blockchain-powered initial public offering platform, run by New York-based Sprinkle Group SA.
The Slump in Oil Price is Bringing Bahrain Closer to Blockchain
The slump in crude oil price since 2014 has left countries depending on oil, such as Bahrain in mounting debt. To support the country’s ailing economy other members of the United Arab Emirate has pledged to $10 billion in aid.
This is a good gesture, but it might not be enough to get the country out of the debt it is currently battling with. This is why the country is doing all its best to attract blockchain talent.
With the launch of a Blockchain Academy by the country’s Institute of Banking and Finance, it is clear that the country sees blockchain as a “huge opportunity”