CNN said that Bahrain is on its way to becoming the center of “digital assets” trading in the Middle East thanks to the financial measures it has taken regarding the cryptocurrency market, which allowed the central bank to issue licenses to crypto-asset companies, and what this included in the initial approval of the Binance Stock Exchange. The largest cryptocurrency exchange in the world in terms of trading, to become a service provider in the Kingdom.
WASHER CNN website He pointed out that the financial sector in Bahrain constitutes 17 percent of the volume of non-oil GDP, and in light of this situation, the kingdom drew a general framework that allowed the central bank to issue licenses to cryptocurrency exchanges in 2019, “significantly ahead of Gulf competitors.”
By allowing cryptocurrency to be accepted as an official method of payment, the bank is allowing established banks to work with exchanges so that customers can easily withdraw and deposit their money, although in most countries of the world digital assets are under the jurisdiction of securities regulators rather than central banks.
In light of this new trend, Rain Financial, the region’s first licensed crypto asset platform, received the approval of the Central Bank of Bahrain in 2019, and the authorities granted another license to the Manama-based Coin MENA.
Last December, it was reported that the Binance exchange had received preliminary approval from the Central Bank of Bahrain to become the provider of crypto-assets in the Kingdom, as part of its quest to become a fully regulated central exchange for cryptocurrency.
“The licensing is just a formality once Binance completes the incorporation requirements,” said Abdullah Hajji, director of licensing at the bank, and described Bahrain as “the ideal location to set up a headquarters for the digital exchange.”
“In response to the growing demand for crypto assets, the Central Bank of Bahrain was an early adopter of crypto assets in the Middle East,” Central Bank of Bahrain Governor Rashid Al Maraj told CNN.
CNN says that when Binance announced last December the establishment of an advisory body in Dubai, local Bitcoin enthusiasts (in the UAE) celebrated after seeing that it would be a strong addition to the city trying to establish itself as a cryptocurrency hub.
But despite Dubai’s efforts, the emerging regional digital asset hub is not in the UAE, according to CNN. Binance is not even licensed as an exchange in Dubai. However, it is on its way to becoming a fully regulated central stock exchange in neighboring Bahrain.
Unlike the UAE, Bahrain has banking regulations specific to cryptocurrency, which allows for the creation of cryptocurrency companies, according to Talal Al-Tabbaa, CEO of Coinmena.
In a statement to CNN, the UAE Central Bank said: “In general, most cryptocurrencies are not accepted as a medium of exchange in any advanced economies. However, as with most global financial regulators, the UAE Central Bank remains fully vigilant about developments rapid in this area and agile in its regulatory response.”
Al-Tabbaa, who lives in the UAE, says that the biggest “obstacle” for the UAE currently is the regulation of digital currencies. “If the banking services issue is resolved, Dubai may be the first destination for cryptocurrencies,” he said.
The CNN report notes that Dubai offers incentives to entrepreneurs, does not impose capital gains taxes, and provides safety and a quiet lifestyle in the sun.
She notes that Al-Tabbaa lives in Dubai and that Binance CEO Changping Zhao, who is considered among the world’s richest people, recently bought a house in Dubai while he is awaiting final approval for a Bahraini license. has chirp Last December, a picture of him wearing the Emirati traditional dress, and attached the tweet to the UAE flag.