23 Feb 2019 Jane Whitmoore
Bahrain Opens up to Cryptocurrencies and Blockchain
Bahrain is setting a big goal – becoming the Middle East’s fintech industry hub. The government of Bahrain is thinking about opening its doors to crypto and blockchain companies, and also methods to regulate the use of cryptocurrencies in Bahrain.
Dalal Buhejji, a member of Bahrain’s Economic Development Board, showed confidence that the central bank of Bahrain will release a regulatory mechanism, but it’s unclear when. Bahrain’s central bank stated that there had been previous attempts to make a draft regulation scheme for cryptocurrency-based companies.
Bahrain’s focus is cryptocurrency trading on blockchain technology companies. The digital asset realm remains without global regulatory frameworks, and significant financial hubs usually issue their own, unique regulations. This is the main reason crypto companies are “seeking shelter” in smaller countries with more crypto flexibility, such as Malta, Gibraltar or Switzerland.
Companies like SprinkleXchange, a blockchain-based IPO platform, are among a short-list of 28 businesses that are eligible for working with cryptocurrencies and blockchain, in a so-called “regulatory sandbox”. For now, Bahrain’s government is giving the companies limited resources, like the number of users and amount of transactions. The trial period is set for nine months, after which the central bank must be ready with its first official regulatory framework.
Alexander Wallin, CEO of Sprinkle Group SA, stated that their IPO exchange platform should go live at the end of February. With such an interest among investors, Wallin expects the first company to float by the end of May.
Bahrain’s economy relies exclusively on oil, and with low crude oil prices, the struggle to stay afloat is real. Other Gulf Cooperation Council members even issued a $10 billion loan to Bahrain to battle the losses and to support the economic climate.
With cryptocurrencies, Bahrain’s government is hoping that it can make income other than oil and liberate the economy from the market stagnation.Blockchain Cryptocurrency Regulations Cryptocurrency Crypto Market Blockchain Development