The Central Bank of Bahrain has published the final set of rules on the regulation of currency trading and other related activities, with the growth of the industry and rising popularity within and outside the Middle East, local media reports.
The bank will continue to strengthen the legal framework to keep current innovations abreast of key financial centers around the world, and the Bank’s application of digital currency laws is in line with its goal of developing a comprehensive framework of financial technology systems Bahrain as a leading financial center in the Middle East and North Africa.
Bahrain published the draft law last December. The final framework includes licensing requirements, governance, cybersecurity standards, anti-money laundering and other risk management procedures, as well as avoiding conflicts of interest, financial reports and minimum capital for digital currency and encryption companies.
Bahrain also opened the Bahrain Bay of Financial Technology in February, which includes more than 30 companies working on the development of digital currency and the technology of the Balkchin and digital payments and other modern financial technologies.
Neighboring Gulf states, including Abu Dhabi and Dubai, are also investing in the growth of emerging financial technology companies. Last year, Abu Dhabi Global launched a framework to regulate digital currency trading, a step towards developing a safer digital currency market in the emirate. This framework includes codifying the currency position and overseeing the activities of trading platforms and other companies in the market.
At the same time, the Dubai Financial Center established the FinTech Hive project to introduce more programs and add new innovations to the banking sector in the region. The project successfully raised more than $ 10 million in 2017. Earlier this month, Saudi Arabia’s regulatory banking authority said it had begun to design a legal framework in line with Saudi Arabia’s economic transformation. The move would help the Saudi Arabian Monetary Agency understand and assess the impact of new technologies in the financial services market.