CBB issues framework for regulating stablecoin issuance
MANAMA, 25 days ago
The Central Bank of Bahrain (CBB) has announced the introduction of a framework for licensing and regulating stablecoin issuers, aimed at ensuring the safe and sound integration of stablecoins into the financial system.
Under the new stablecoin regulation, licensed stablecoin issuers are permitted to issue single currency stablecoins backed by Bahraini Dinar (BD), United States Dollar (USD), or any other fiat currency acceptable by the CBB.
Furthermore, the new regulation aims to mitigate the risks associated with the use of unregulated stablecoins, and ensure a safer and more secure ecosystem, fostering investor confidence and promoting sustainable growth within the sector.
The announcement was made during the FS Horizons: Doubling Down on Digital event, hosted in partnership with the Bahrain Economic Development Board, where industry leaders gathered to highlight Bahrain’s advancements in digital banking, payments infrastructure, and talent development.
On the new regulations, Mohamed Al Sadek, Executive Director of Market Development, said: "By encouraging the development and adoption of innovative financial technologies, the CBB aims to enhance Bahrain’s position as a leading financial hub in the Mena region."
"This milestone reflects the pioneering role the CBB continues to play in overseeing the crypto-asset market and ensuring that the Kingdom’s financial services landscape equipped for future developments," he stated.
Ali Haroon AlAamer, Director – Capital Markets Supervision Directorate, said: "This initiative underscores the CBB's unwavering commitment to integrating crypto-related activities within its regulatory framework and ensuring they are subject to comprehensive oversight."
"It also highlights the CBB’s dedication to providing robust investor protection measures and maintaining a transparent crypto asset market," he added.-TradeArabia News Service
