Central Bank of Bahrain Issues News Crypto Regulation

2216 Total Views

According to local media TradeArabia report, the Central Bank of Bahrain has announced new digital currency regulation.

Previously, in December 2018, the central bank has published draft proposals to regulate and license crypto-related asset services.

The new rules purportedly concern licensing, risk management, Anti-Money Laundering, governance, and Counter-Terrorist Financing measuring, conflict of interest avoidance, business conduct, reporting, and cybersecurity. The regulation further establishes new supervision and enforcement Standards.

Digital currency exchanges licensed by Bahrain’s central bank will further have to respect the guidelines concerning order matching, pre and post-trade transparency, market manipulation and market abuse avoidance, and conflicts of interest.

As per TradeArabia, the central bank’s regulation has further specified that the cryptocurrency exchanges will need to have enhanced due diligence when onboarding new customers, as well as specifications involving assurance that securely encrypted custody wallets, will always be able to be retrieved.

As reported recently, the Central Bank of Bahrain earlier started a regulatory sandbox to enable blockchain technology and crypto companies to work in the nation, pending formalized regulations.

Also, in January, the University of Bahrain declared that they would issue diplomas on the blockchain technology using the Blockcerts open standard in collaboration with Learning Machine, a startup providing a system to publish verifiable official records using a blockchain-anchored format.