The Central Bank of Bahrain (CBB) has announced draft rules for regulation of digital assets and certain aspects of the nation’s crypto industry.

The CBB rules cover the implementation of a licensing regime for cryptocurrency trading services providers. In addition, a supervisory mechanism has also been developed for companies offering crypto assets related services. The draft paper discusses the necessity to introduce ways of safeguarding customer interests. It also talks about technology standards that will combat cyber security risks associated with the crypto industry.

Khalid Hamad, CBB’s executive director of banking supervision, has commented that the regulatory framework is aimed at addressing the market demand for such services. He further stated that while framing the rules, CBB had an insightful experience with the Bahrain Fintech Bay participants.