Bahrain’s central bank, the CBB, is cementing its position as a global leader in fintech by embracing crypto assets and fostering a dynamic regulatory environment.

In a significant move in September 2023, the CBB broadened the scope of tradable securities to include crypto assets. This groundbreaking decision, outlined in Resolution No. (45) of 2023, recognises the growing importance of digital currencies while ensuring proper oversight. However, the CBB emphasises that trading will be subject to specific rules and controls yet to be issued.

The CBB also prioritised robust security measures for crypto-asset service providers. Building on the existing Crypto-Asset (CRA) Module of its Rulebook, the central bank now requires adherence to global benchmarks like Crypto Currency Security Standards (CCSS). These standards encompass critical areas like wallet controls, multi-factor authentication, data protection, and proof of reserves, ensuring the integrity of crypto transactions.

Further demonstrating its commitment to a future-proof framework, the CBB introduced amendments to the CRA Module in March 2023. This update not only establishes a new chapter on digital token offerings but also empowers the CBB to approve additional activities for crypto-asset licensees on a case-by-case basis. This flexibility fosters innovation while maintaining regulatory control.

Bahrain’s proactive approach extends beyond its borders. The CBB, in collaboration with the National Economy Sector of the Finance Ministry, is leading a regional study on crypto asset regulation. Partnering with the Agile Nations Network, spearheaded by the UAE’s Artificial Intelligence Office, this initiative fosters knowledge sharing and best practices within the GCC.

The CBB’s commitment to a dynamic regulatory landscape is further evidenced by its ongoing updates to the CRA Module. Revisions in March 2023 included a dedicated chapter on digital token offerings, a refined definition of crypto assets, and enhanced cybersecurity requirements mirroring those recently implemented for other financial institutions.

By embracing innovation while maintaining robust oversight, the CBB is positioning Bahrain as a fertile ground for responsible crypto-asset adoption and a global hub for the future of finance.

Bahrain’s central bank, the CBB, has been actively working with cryptocurrency companies in 2023. They helped firms like CoinMENA and Rain resolve issues like banking and cross-border transfers, and approved additional liquidity providers to improve their services. The CBB also supported their expansion plans and introduction of new products.

For Binance, the CBB approved a capital increase and greenlit the launch of new features like futures trading under specific conditions. Additionally, Binance is exploring Grid Trading, Automated Trading, and other functionalities with the CBB’s approval.

Two new crypto companies, Waterford Bahrain and Amber Technologies Bahrain, received licences but are still in the testing phase or haven’t started operations yet.


Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (