New Central Bank Of Bahrain Report Shows Nation Is Fostering A Friendly Bitcoin And Blockchain Ecosystem
Reports Suggest That Bahrain Is Increasingly Becoming A More Crypto-Friendly Nation
As per an all-new study released by the Central Bank of Bahrain (CBB), the Gulf nation is becoming “increasingly crypto-friendly” with each passing day. This is made evident by the fact that more than half of the firm's working within Bahrain's existing ‘crypto-regulatory sandbox’ are now serving as either altcoin exchanges or other businesses related to this domain.
For those of our readers who may not be aware, a total of 30 different companies have been approved by the Bahraini government (till date) to work within its aforementioned regulatory sandbox.
Out these companies, four of them were given approvals this year and three of them (AT Payments Llc, Zpx Pte Ltd., and Bitcove Bahrain) are now serving as altcoin service operators.
A More Detailed Look At The Report
- According to CBB’s aforementioned report, by the end of 2018, around 35 percent of the approved firms were serving as cryptocurrency exchange platforms while 11 percent were operating as CSPs (Crypto Service Providers) such as ATMs.
- Over the course of the last 6-12 months, the Bahrain government has been trying to lure in blockchain/crypto enthusiasts to come and set-up their businesses within its borders.
A couple of months back, a spokesperson for the Bahrain Economic Development Board (BEDB) issued a statement wherein he asked Indian business owners to come forth and take advantage of the crypto opportunities being offered his nation.
Additionally, in regards to all of these developments, the CBB commented:
“Our existing sandbox allows startups to test their technology-based innovative solutions relevant to fintech or the financial sector in general. In this regard, Tarabut Gateway has became the first company to successfully complete the regulatory sandbox stage and receive the CBB’s in-principle confirmation under the Open Banking regulatory framework.”
What Does Bahrain’s Existing Crypto Setup Look Like?
When examining Bahrain’s existing economic framework, we can see that quite recently the nation’s central bank issued a “consultation paper” that contained a number of directives for the various services being offered by the nation’s crypto businesses.
On the subject, a representative for the CBB stated that the consultation paper provides crypto biz owners with a well defined “framework” that can guide all of their decisions related to things like:
- Supervision of crypto-assets
He then went on to add:
“The CBB crypto-asset rules deal with the rules for licensing, governance, minimum capital, control environment, risk management, AML/CFT, standards of business conduct, avoidance of conflicts of interest, reporting, and cyber security for crypto-asset services. They also cover supervision and enforcement standards including those provided by a platform operator as a principal, agent, portfolio manager, adviser and as a custodian within or from the Kingdom of Bahrain.”
In closing out this piece, it should be made clear that the CBB is looking to devise a way in which to help foster a healthy crypto environment wherein a certain level of “pre and post-trade transparency” is maintained at all times.
Not only that, but the financial institution is also looking to figure out ways in which to avoid market manipulation and market abuse — so that more and more people start to become comfortable with the idea of using alt-coins to facilitate their everyday purchases and payments.