The central bank of Bahrain has issued the final rule on cryptocurrency in the country. This is aimed at aiding crypto’s growth and development in the country as reported by TradeArabia.
Regulating The Crypto Space In Bahrain
The central bank of Bahrain noted in a press release that the regulatory rules are aimed at ensuring crypto related activities in the country are brought within the regulatory parameters. Also, to subject the industry to comprehensive regulatory and supervisory measure.
Previously, in December 2018, the central bank issued a draft proposal to regulate and license crypto asset services potentially.
The executive director of banking supervision, Khalid Hamad said the CBB would continue to enhance regulatory framework to keep pace with the innovations taking place in the major financial center around the globe. He also noted that the introduction of these rules relating to crypto assets is in line with its goal to develop a comprehensive rule for the fintech ecosystem supporting Bahrain’s position as a leading financial hub in the Mena region.
Also, the new rule for the crypto industry in the country will cater for licensing, governance, minimum capital, control environment, risk management, AML/CFT, the standard of business conduct, avoidance of conflict of interest, reporting, and cyber security for crypto asset services.
Further, the rules also cover supervision and enforcement standard including those provided by a platform operator as a principal agent, portfolio manager, adviser, and as a custodian within or from Bahrain.
Additionally, concerning the platforms that are licensed as crypto asset exchanges, the regulatory framework contains rules related to ordering matching, pre, and post-trading transparency, measures to avoid market manipulations and market abuse and conflict of interest.
Recently, the CBB launched a regulatory sandbox to enable blockchain and crypto firms to operate in the country before the introduction of formalized regulations. 28 Crypto firms were licensed to work with CBB’s sandbox as the country open its order to crypto firms.
Crypto Regulation and Crypto Adoption
Crypto regulations are key to crypto adoption. Without appropriate regulations in place for the industry in any country, crypto firms will not have a suitable environment to operate. Recently, the volume of Bitcoin trading surged in Indonesia after crypto was Legalized as a commodity.
Also, countries that have annexed the dividend of the crypto and blockchain industry such as Malta, Japan, Korea, among others have created suitable regulations for the industry. The United States, France among others have started to take a similar step to annex the dividend of the industry for the government and the citizens.