Central Bank of Bahrain Issues New Crypto Asset Legal License Framework
Many central banks around the world are currently creating crypto regulation in order to boost the crypto economy of their countries. The Central Bank of Bahrain is one of the latest to enter the bandwagon.
Recently, the bank decided to release the regulations to blockchain and digital assets in the country in an official manner. The reports are that the bank has decided crypto licensing, governance, risk management and all the activities involving the asset.
There is still some regulation to be addressed, but the bank signalized that it will solve this issue soon enough. One of the final sets of regulation that the country is yet to see will make cross-border payments using cryptos easier.
Khalid Hamad, the Executive Director of Banking Supervision of the Central Bank of Bahrain, has affirmed that the country will continue to work towards improving the regulatory framework and that the goal is to always keep up the pace with the innovations that are happening now.
According to him, the introduction of these rules will be very important in order to develop a comprehensive set of rules and goals for the fintech industry to create its ecosystem in the country and support the country’s position as an important hub for this kind of technology.
At the moment, Bahrain has over 30 blockchain companies and its sector is only starting to develop in the country. This was the time to regulate in the industry before it got too big and that was what the regulator was able to make.
Now, the companies that will continue their services in the country will have a clearer direction of what they have to aim in order to create a successful business in Bahrain.
Regulations will also cover enhanced due diligence and the necessary insurance steps in order to set up a company. The country has also recently affirmed that it would license crypto companies in Bahrain and put them under a regulatory sandbox.
Anti-Money Laundering and Counter-Terrorism Financing measures which are adequate to the international regulations are also being set up in the country, which will establish new enforcement standards now that the industry will be regulated.
Blockchain In The Gulf Region
Bahrain is not the only country in the Gulf region using the blockchain technology. Several other countries of Arabia are also starting businesses in the region. Saudi Arabia, one of the richest countries of the region, is leading efforts in this area.
Another country that is a local leader in the blockchain industry is the United Arab Emirates, which has made several partnerships with Saudi Arabia and near countries in order to expand its blockchain market.
Recently, the University of Bahrain has also announced that it would emit diplomas on the blockchain starting soon and that it would do it via a partnership with Learning Machine, a startup that is used to verify official records.