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Bahrain Set to Establish Itself as Regional Leader in Cryptocurrency and Blockchain Technology

The relevant draft regulations applicable for regulating the cryptocurrency are out on the cryptocurrency platform in the Kingdom of Bahrain. The Central Bank of Bahrain has prepared the draft.

A Bahrain news agency states that the rules laid down in the draft are focused on regulating the operations of crypto assets.

The major aim of the regulatory framework is to license, regulate and supervise the services offered.  The draft rules are framed in a way to protect the interests of consumers.  Appropriate cybersecurity and risk management protocols are put in place. The applicable technological standards have been defined.

Khalid Hamad, Executive Director,  Banking Supervision, Central Bank of Bahrain stated that “This regulatory framework will be addressing the demand from the market as applicable for these services.  The regulation recognizes the innovation factor in financial services.  The CBB’s experience with participants in the Regulatory Sandbox was insightful in framing these rules.”

Reportedly the Central Bank of Bahrain is expecting feedback for its draft cryptocurrency by the end of the last day of 2018.

Bahrain is evolving to be the best in the International Fintech Hub.  Bahrain has already identified the Fintech sector as being crucial in contributing to the development of the Kingdom as the regional business and banking hub.

The regulatory norms as framed for the Kingdom permits the licensing of financial institutions by CBB.  Several other financial firms will as well be able to “test their technology-based innovation” on whether they are solutions relevant to the Fintech or Financial Sector overall.

Khalid Al Rumaihi, the CEO of the Kingdom’s Economic Development Board, remarked in early September 2018 that Bahrain was oriented towards adopting the cryptocurrencies.  Reportedly, stated that a Bitcoin Exchange has already expressed interest in establishing a shop in the constitutional monarchy.

In as much as Bahrain has been showing interested in adopting cryptocurrency, they have been keen on blockchain technology as well.

In February 2017, Al Rumaihi reported that the constitutional monarchy had initiated talks with the Central Bank of Singapore and a few other firms concerning adoption of the distributed ledger technology to establish as a regional leader in the Fintech industry.

Bahrain is all set to unlock the possibilities for business in the blockchain technology and cryptocurrency zone.  When the Kingdom is ready to explore the opportunities, there is nothing that will prevent “Bahrain from becoming a leader in the Fintech space.”

Several other ministers including Dr. Abdulhussain Mirza, the electricity and water affairs minister have stressed the importance of the adoption of the blockchain technology in the private sector.

 


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