The Kingdom of Bahrain boldly set the scene of stable currency, allowing one of the clearest work settings in the emission of digital assets in the Middle East region.
The Central Bank of Bahrain (CBB) Launched its First Organizational Framework for the Issance of Stable Currencies (Stablecoins) and the Offering of its Products, Which Makes the Gulf Kingdom One of The Few Regions that has initiated Official Laws to Regulate The Activities of Companies This sector, and the new laws that we Issued in Accordance with the Sixth Edition of the “Financial Market Regulations” of the Central Bank Seek to Provide Legal Clarity for the Exporting of the currencies working in Bahrain or on the basis and supervision.
Bahrain establishes detailed organizational procedures for the first stable currencies of the kingdom
According to this organizational framework, the supply, emission and combustion of stable currency products will be treated in addition to managing the activities of conservation and parallel assets as financial activity subject to organizational control.
While entities wishing to provide these services must obtain a license from the central bank of Bahrain, the law prohibits the practice of activities linked to stable currencies in Bahrain or without prior approval, and the law requires that stable currencies be fully linked to the value of a paper currency (species) – such as bahnted currencies (BHD), the USD dollar (USD).
The central bank explained that stable currency exporters will have to keep the rate of 1: 1 of the parallel reserves supported by fundamental fundamental fundamentals to comply with strict risk standards, and the organizational framework indicated that the emission authorities should comply with annual audit obligations, as well as the compliance of strict criticisms related to cybersecurity, internal controls and Users.
According to this new legislative framework, the Central Bank has set multiple internships for granting licenses that compulsory applicants to prove thaty own 250,000 bahraini dinars of shareholders’ money as at least, in addition to meeting the conditions related to transparency, governance, risk management and the it technology system (IT), and the framework for granting the new licenses has been identified clearly operational and precautionary supplies, as has the exporters of providing the white document linked to stable currency and clarifying the basic data and the financial foundations linked to it.
In particular, the legislative framework has been granted by those who retain stable currency sales in the right to always recover the value of their assets in cash, as well as to prohibit the payment of the advantages of preserving them, as well as to subject all the assets of the parallel reserves to the independent audit examinations and to maintain them in separate accounts. On the other hand, the Central Bank underlined its enjoyment of the authority to refuse any part of issuing digital currencies which it considers as incompatible with the economic interests or public interests of the citizens of Bahrain, and the bank has warned to maintain the right to impose additional financial reserves if it believes that the problems of the program organization constitute an important risk for the financial system.
Bahrain contributes to the increase in the momentum of digital assets in license of cryptographic institutional products
Bahrain continues to consolidate his position as one of the important Crapto centers in the region by providing organizational clarity and increasing institutional participation; Last April, Binance obtained a license for the payment service provider of the Central Bank of Bahrain, which enabled it to work as an entity engaged in regulatory laws, providing exchange of digital currency in official currencies, staining and electronic portfolio uses, which allows users of the Bennes platform inside Bahrain to convert their monetary observation and vice Platform is via banking transfer, visa and mascard visa.
It should be noted that the Director of the Licenses Department of the Central Bank of Bahrain Abdullah Haji (Abdalla Haji) said that “this license represents an enrichment of the technical system of digital payment operations in the country, in particular because it represents support for companies operating in the Kebeto sector and provides payment solutions using official currencies.”
Bahrain’s efforts have also expanded to develop a regulatory framework for the Craraibo sector in order to include traditional institutions; In October 2024, the National Bank of Bahrain (NBB) launched the first investment product organized for Bitcoin-BTC in the region, allowing to invest in the currency while providing financial protection.
@Nbbonline A intdud bitcoin investment product, which will be available “exclusively for accredited investors”.#Bitcoin #Nbb #Investmentmfundhttps://t.co/nlkyxmpabj – cryptonews.com (@cryptonews) October 8, 2024
It should be noted that this product – which has been developed in cooperation with the company ARP Digital, which was created by one of the former partners of Goldman Sachs – targets eligible investors who wish to invest in the assets of the Crapto deliberately, and these developments are consistent with the trends to adopt digital currencies in the MENA (MENA) region.
According to Chainalysis, this region attracted $ 338.7 billion during the period between July 2023 and June 2024, or around 7.5% of Cribo’s investment sizes worldwide, and 93% of this value goes back to transactions made by experienced institutions and traders with a value of more than $ 10,000, which reflects more and prosperous for the sector.
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