Bahrain Amends Crypto Assets Framework to Include Digital Tokens

Bahrain Amends Crypto Assets Framework to Include Digital Tokens

The Central Bank of Bahrain has made amendments to its crypto-assets (CRA) module which includes expanding its scope to include digital token offerings as part of its framework.

All digital tokens’ offerings that exhibit the characteristics of security will be regulated by the CBB. The central bank will examine the underlying economic purpose of the digital token, its structure, characteristics, as well as the rights attached to the digital token to determine whether a digital token qualifies as a security.

The amendments also outline new requirements to enhance safeguarding clients’ assets to provide high levels of protection for investors.

Furthermore, the new amendments allow crypto-assets licensees to engage in additional activities, which are not within the stipulated regulated crypto-asset services after obtaining the CBB’s approval.

The amendments aim to cater to the ongoing developments in the crypto-assets markets and comply with the industry best practices while enhancing investors’ protection.

Abeer Al Saad

Abeer Al Saad

Abeer Al Saad, Director of the Capital Markets Supervision Directorate at CBB said,

“We endeavour to provide adequate safeguards to investors without inhibiting innovation adoption at the CBB, as we continue to monitor market trends and review the regulatory framework to keep up with the latest developments in the field, as well as maintain the competitiveness of the sector. This milestone is a reflection of the pioneering role the CBB continues to play in regulating crypto-assets.”

 

Featured image credit: Edited from Unsplash

No Comments so far

Jump into a conversation

No Comments Yet!

You can be the one to start a conversation.

Your data will be safe!Your e-mail address will not be published. Also other data will not be shared with third person.