Bahrain drafts new regulation to address the demands of the crypto market
According to the Bahrain News Agency, the Central Bank of Bahrain (CBB) drafted new regulation for the cryptocurrency market. The regulation is a part of the country’s series of initiatives to be a regional leader in the banking and business hub.
Reportedly, the regulation focuses on establishing technology standards, protecting customer information, and minimizing risks associated with the breach of cybersecurity. Thus, this legislation will set regulatory guidelines and standards for the usage and licensing of crypto.
In response to the drafted legislation, CBB’s executive director of banking supervision, Khalid Hamad stated the recognition of crypto in financial services is overdue. Similarly, Bahrain has adopted this logic by positioning itself as a leader in the crypto industry and starting new developments.
Bahrain launched a regulatory sandbox for financial companies to trial crypto-based solutions in a controlled environment. It was also reported that the country is interested in a wider adoption of cryptocurrency and blockchain technology. For instance, Bahrain Minister of Electricity and Water Affairs, Dr. Abdulhussain Mirza, stated:
“Blockchain and cryptocurrency take us a huge step forward in finding a secure way to facilitate transactions. Blockchain’s ability to protect user’s data is a true mark of progress, because it can be applied in different companies [and] industries, including cybersecurity.”
CBB is expected to hear feedback about the new legislation by the end of this year.