Bahrain’s Finance and National Economy Minister, Shaikh Salman bin Khalifa Al Khalifa, announced that the country’s central bank is drafting regulations for the issuance of stablecoins. The new legislation is expected to lower transaction costs and improve financial access in the country.
Al Khalifa made this disclosure in response to a question from legislator Hisham Al-Asheeri regarding digital asset regulation. He emphasized that the Central Bank of Bahrain (CBB) has been proactive in creating a safe environment for digital assets, aiming to reduce risks associated with external platforms that are not subject to oversight, such as money laundering and fraud.
Bahrain has long been seen as a crypto-friendly nation, issuing licenses to cryptocurrency exchanges such as Coinmena and Binance. The country’s stance has allowed companies like Stc Bahrain to accept cryptocurrencies. However, there are concerns that without effective regulation, other companies might hesitate to embrace cryptocurrencies and stablecoins.
To address these concerns, Al Khalifa explained that the new legislation would allow the central bank to monitor transactions and activities through a blockchain-based tracking system. The CBB will have the authority to impose penalties, including fines or service suspensions, for any violations of the proposed regulations.
