The Central Bank of Bahrain (CBB) has developed a set of crypto regulations designed to cover risk management, licensing, KYC, AML, and much more. The CBB has been on a mission to attract blockchain and distributed ledger technology (DLT) startups to the region and it’s hoping that the new crypto regulations will help it achieve those goals. At a time where hacks on exchanges and crypto projects seems to be rife, these new regulations will help secure the Bahraini crypto scene, hopefully preventing attacks on projects from the nation.
Following in the Footsteps of Crypto Pioneers
Gibraltar was the first country to push crypto regulations live, with Malta quickly following suit. Since then, countries from every corner of the globe have been following in Gibraltar’s footsteps, looking to become crowned the blockchain capital of the world. Everyone from Italy to Venezuela has been looking at their own form of crypto regulations, with Bahrain being the latest in a string of countries to show interest. Bahrain has big boots to fill, but it’s definitely starting in the right place if it wants to achieve crypto domination.
Hitting the DLT Frontlines
Bahrain has catapulted itself to the frontlines of the battle for DLT supremacy. With so many jurisdictions vying for supremacy in the DLT battle, quality of regulations is a huge part of winning. Bahrain’s new regulations easily outperform the puff pieces of regulations seen in Malta, meaning the front of the pack isn’t too far away. In a statement Khalid Hamad – CBB Executive Director of Banking Supervision – said:
We will continue to enhance our regulatory framework in order not to be left behind in the crypto movement taking place in key financial centers across the globe. The introduction of cryptocurrency rules by the CBB is part of its goals to implement robust rules for the fintech sector, further cementing Bahrain’s status as a leading financial hub in the Mena region.
Signing up With Ripple
Ripple is the one project that is looking to create a global payment network, and if the CBB can form a partnership with one of the many Ripple platforms, it would definitely help the nation. Recently, two new firms signed up to RippleNet in a bid to create a global payments corridor, and Bahrain could help extend this network even further. That being said, there is a relatively large amount of controversy surrounding Ripple’s partners. A blogger outed some of Ripple’s darkest secrets – including the fact that a number of “partners” looks like sham businesses.
Bahrain is looking to become a global DLT superpower, and these regulations from the CBB are a step in the right direction. While it has some way to go before it’s even a contender for DLT capital of the world, it’s already miles ahead of a number of other countries.