Bahrain’s Central Bank has worked towards a comprehensive set of cryptocurrency regulations. These regulations include licensing, governance, anti-money laundering, avoidance of conflicts of interest, cybersecurity, and risk management.
The executive director of banking supervision at the Central Bank of Bahrain, Khalid Hamad, briefly explained the need for the comprehensive cryptocurrency regulations in the country. He was quoted saying,
“The 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.”
Bahrain – Opening Cryptocurrency Door to the Middle East
Bahrain taking a pro cryptocurrency stance could set the pace for cryptocurrency regulations throughout the Middle East. The regulations highlighted due diligence for new clients, encrypted safe custody accounts, along with insurance to better cover cryptocurrencies against hacks or thefts.
Bahrain’s central bank has already launched a regulatory sandbox which allows blockchain and cryptocurrency companies to work well before the established regulations on the technology.
At the beginning of 2019, the University of Bahrain announced the issuance of diplomas on Blockchain. It employs the Blockcerts open standard in partnership with Learning Machine.
This month, February Bahrain opened the Bahrain Bay of Financial Technology. It includes more than 30 companies which are dedicated to cryptocurrencies and digital payments.
Middle East’s Blockchain and Crypto Leader
Bahrain has always been the epicenter for financial banking. However, countries such as the UAE and Qatar are using Blockchain to gain an advantage over banking in the Middle East.
It will be interesting to see which Middle Eastern country creates the next big blockchain company and has a more favorable regulatory climate when it comes to cryptocurrency.
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