Bahrain recently made history by becoming the first country in the Middle East and North Africa (MENA) region to launch onshore security token regulations. The new rules announced by the Central Bank of Bahrain (CBB) expand its existing crypto asset framework and will provide much needed clarity to the sector. Under these regulations, all digital tokens that may qualify as securities come under the CBB’s review.

The new rules provide enhanced protection and security for cryptocurrency investors by instituting stringent requirements for their asset protection. Apart from that, the CBB has also authorized crypto-assets licensees to expand their services beyond the regulated domain with its approval.

Commenting on this, Mrs. Abeer Al Saad, Director of the Capital Markets Supervision Directorate at the CBB, said, “It is exciting to issue the new regulations which will regulate the crypto-assets market in a fair and transparent manner.” Bahrain has been at the forefront of bringing cryptocurrency adoption into the mainstream in the Gulf Co-operation Council (GCC) and the MENA region. These efforts have culminated in the launch of RAIN, CoinMENA, and Binance, among other renowned crypto exchange brokers.

The CBB plans to continue monitoring the sector closely and review the existing framework periodically to ensure the region remains a competitive market for the growing cryptocurrency sector. The bank also emphasizes on a risk-based regulatory approach that safeguards the interests of investors without hindering innovation.



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