The central bank of the Kingdom of Bahrain has initiated a round of interactive and consultative deliberation regarding the fate of crypto frameworks in the country. It has done so by making their draft set of regulations public, thereby soliciting recommendations regarding possible modifications.
The Bahrain News Agency, a local media outlet, has covered the details of the draft regulation. The news outlet has noted that the draft set of regulations are meant to give a proper structure to the process of monitoring the actions of crypto asset based platforms. In addition, these regulations are also intended to clarify criteria and procedures related to the licensing of virtual currency services.
Besides these obvious regulatory goals, the draft regulations also seek to set down norms that would keep crypto users in the country safe from cybersecurity breaches or even cryptocurrency scams. They will be setting adequate standards to be met for service providers to operate in the country’s emerging crypto space.
Khalid Hamad, the executive director of banking supervision at the Central Bank of Bahrain, had this to say in his formally issued statement:
“This regulatory framework will address the demand from the market for these services and the need to also recognise this innovation in financial services. The CBB’s experience with the participants within the Regulatory Sandbox was insightful in shaping these rules.”
The Central Bank is expecting feedback and suggestions from various stakeholders in the related fields, including both finance and technology, among others, by the end of this month and year.
Of late Bahrain has been enthusiastic about embracing cryptocurrencies. As early as September 2017, Khalid Al Rumaihi, the CEO of the nation’s Economic Development Board, spoke on how eager Bahrain was to adopt virtual currencies. In addition, he had said that a Bitcoin exchange was looking to set up shop on Bahrain’s soil and the Government was ready to welcome it with open arms. With comprehensive crypto regulations in place, the constitutional monarchy will find it even easier to roll out the red carpet for crypto players.