A couple of months ago, the media reported that Bahrain has finalized the draft for the regulation of cryptocurrencies. Was recently launched its final version, in connection with which Bahrain has become the safest place for cryptocurrency businesses in the Arab world.
Khalid Hamid, the director of Banking Supervision, said:
"The Central Bank of Bahrain introduction of the rules relating to crypto-assets is in line with its goal to develop a comprehensive rules for the FinTech eco-system supporting Bahrain’s position as a leading financial hub in the Middle East and North Africa".
On the central bank's official website noted that the rules require rigorous enforcement. Custodial wallets in the country have to ensure that wallets are never irretrievable as well as insure assets in their custody. The rules also specify that a cryptographic operations needs to educate clients. It says as much about the unique nature of the crypto-space, and the unique operating environment.
In addition, officials of Bahrain have a positive attitude to blockchain technology. Abdulhussain Mirza, Minister of Electricity and Water Affairs, said:
"Technologies such as the blockchain, giving us an incredible help in finding a safe way to facilitate transactions. The ability of the blockchain to protect user data is a sign of real progress, because this technology can be used in different companies from different industries, including cybersecurity".
The island nation has acceded to several other countries in the region who carefully study their own economic prospects. "Post-oil" world, there are only a few decades, however, countries with a high degree of dependence on oil production have a unique incentive to create technological industries. Blockchain offers new opportunities for economic growth and the creation of financial systems, independent of the global financial system, what business in the Middle East needs a lot.
The United Arab Emirates and Saudi Arabia are also working on a solution for cross-border payments. In addition, the UAE government is taking a number of different initiatives regarding the blockchain, because in Dubai ― the center of Arab Finance — are branches of several cryptocurrency exchanges and companies, including Ripple.
Recently it became known that Iran, which constantly faces with various problems due to sanctions from the United States, has launched its own crypto currency for international payments. The launch was due to the fact that States that do business with Iran, have problems with receiving money within the country because of the architecture of the traditional payment solutions such as SWIFT.