Following Drafted Crypto Rules Release In December, Bahrain Aims To Introduce Official Regulations
Following Release Of Drafted Crypto Rules In December, Bahrain Aims to Introduce Official Regulations
Cryptocurrency is finding its way into nearly every country, and the only way to determine how will impact the economy in those regions. Some countries have chosen to ban cryptocurrency from being traded or even hosted within their borders, while others have taken a welcoming approach. Establishing regulations in the region helps the public to understand how to effectively use these tokens, and Bahrain has decided to join the bandwagon of many other countries in establishing their own regulations for the crypto industry in their economy.
Even though Bahrain was formerly a hotspot for the financial industry in the Middle East, other Gulf nations have been taking over that spot in the last few years. Establishing cryptocurrency regulations will be a helpful way for the nation to gain back some of their footing, even though the potential laws have yet to be implemented.
In a report from Bloomberg, the local authorities are presently establishing a trial period, during which time crypto companies can operate under the temporary regulations. As they function, the local regulators will determine the best regulations in the area to govern digital assets. Considering the recent draft regulations that the Central Bank of Bahrain issued at the end of the year last year, the fact that the country is now working to establish official regulations should not be surprising.
The trial period of nine months is planned, and there are already 28 firms that have gotten approval for their operation during the trial. One of the listed firms in the trial is SprinkleXchange, which will be operating a blockchain-based platform, listing companies much like a traditional stock exchange.
Along with Bahrain’s experiment in bringing in new crypto firms to their nation, there are other countries that have jumped into the industry to work on attracting more big players to their economy. Gibraltar is one of the first countries to embrace the idea of online gaming back in the 1990s, and their decision to create a distributed ledger technology license for companies locally has enabled many companies to work within the blockchain industry.
One of the most notable countries to embrace the crypto industry has been Malta, which was one of the first countries to regulate and welcome both blockchain technology and cryptocurrency.