Bahrain is now a suitable place to do crypto-related businesses. After a long journey of regulations drafts, the final one has been completed.
The forgotten Middle East
We often hear about cryptocurrency regulations in Asia and Europe. Sometimes, there are news about another American state trying to adjust the law to the changing society and technology, like blockchain. South America is also known for setting new crypto regulations. Venezuela went a step further and established a tax payment in cryptocurrency. But, except for Dubai, we almost never see any news about the Middle East’s law revolutions. Until now.
Good news from Bahrain
On February 25th, Central Bank of Bahrain published an official announcement on its website. The bank informed about issuing of the new cryptocurrency rules. The reasoning for this decision lies in the need to ensure that crypto activities are comprehensively supervised and safe. It will allow the citizens to invest, trade and use the technology in a legal way.
The framework covers licensing, governance, minimum capital, risk management, AML/CFT, standards of business conduct, reporting, and cyber security for all crypto-asset services. It also mentions supervision and enforcement standards.
Moreover, for the companies licensed by the law as cryptocurrency exchanges, the regulations will also include trading transparency and they will help to avoid manipulations, frauds and various conflicts of interest.
Shaping the cryptocurrency world
The regulations are necessary for shaping a legal, friendly and fair cryptocurrency space in every country. The discussion on whether the digital assets should be considered a legitimate form of business has, fortunately, died out. Now it’s more of a ‘how’ than an ‘if’ debate. Bahrain has become the first Arabic country to comprehensively work on crypto regulations. The Central Bank of Bahrain also stresses the need to especially enhance the diligence of this legislative process. It seems like Bahrain is becoming another crypto-friendly place, along with Malta and Switzerland.