New rules regarding licensing, governance, risk management, AML and Counter-Terrorist Financing measures, business conduct, conflict of interest avoidance, reporting and cybersecurity have been released.
CBB, The Central Bank of Bahrain has officially released regulations dedicated to blockchain and digital asset operations in the country. The Persian Gulf country of Bahrain has become the latest to join the bandwagon of countries gearing up for cryptocurrency adoption.
The structure of the final set of regulation encompasses the realms of crypto licensing, governance, capital, control environment and risk management.
The roll-out of the final set of rules will facilitate seamless cross-border payments and explore technology offerings.
The Executive Director of Banking Supervision of the CBB, Khalid Hamad, said in an email statement, that the rules have been launched to position the smallest gulf country on the map of the world’s leading fintech destinations. Hamed further detailed,
“We will continue to enhance our regulatory framework in order to keep pace with the innovations taking place in the major financial centers around the globe. The CBB’s introduction of the rules relating to crypto-assets is in line with its goal to develop comprehensive rules for the FinTech eco-system supporting Bahrain’s position as a leading financial hub in the Mena region.”
The country is all set to bolster its economy, with over 30 blockchain and crypto dedicated players, by leveraging the nascent yet, highly potent technology. Realizing the need to regulate the risks that go hand-in-hand with the new technology, the framework outlines the measures for transparency both pre and post-trading, initiatives to mitigate manipulation and fraudulence in the crypto ecosystem.
According to Trade Arabia News Service, the regulations also cover measures for enhanced due diligence [EDD], necessary insurance covers and steps to ensure wallets can be retrieved.
This development comes after the Gulf country recently announced the licensing and operation of crypto firms in the country on a trial basis under a regulatory sandbox. Previously, Ola Doudin, the CEO of the Middle Eastern exchange, BitOasis, stated:
“..great step in the right direction for the crypto-asset ecosystem in the region.”
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