The Central Bank of Bahrain (CBB) has issued a number of amendments to its crypto assets module top account for digital tokens.
According to the CBB, the changes were made on the back of a consultation with the industry and will aim to bring Bahrain’s crypto assets market up to date with developments in the market and in line with industry best practice.
More specifically, the amendments have widened the scope of the framework to include ‘digital token offerings’.
All digital tokens that exhibit the characteristics of security will be regulated by the CBB. This characterisation will be based on the token’s underlying economic purpose as well as its structure and any rights attached to the token.
The amendments also address the safeguarding of clients’ activities and increase the activities that crypto assets licensees can carry out.
According to Abeer Al Saad, the director of the capital markets supervision directorate, the CBB has adopted a risk-based regulatory approach to crypto assets.
“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,” she said.
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