Bahrain to Introduce Cryptocurrency Regulations
- The country's central bank released draft rules at the end of last year

Once a hub for the financial services industry in the Middle East, Bahrain has been losing out to other Gulf nations, particularly Qatar and the United Arab Emirates, in recent years.
Perhaps trying to recover some lost ground, the small island nation is going to be introducing cryptocurrency Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term in the near future.
According to Bloomberg, Bahraini authorities are going to allow cryptocurrency companies to work in the country for a trial period.
During that time, local financial regulators are going to look at how they can develop regulation for digital assets.
News that the Gulf state is trying to attract cryptocurrency firms won’t come as a surprise to many in the digital assets space.
It was only two months ago, after all, that the Central Bank of Bahrain issued some draft regulations for the cryptocurrency industry, with the consultation period ending on December 31.
The regulator’s trial period is set to last nine months. Twenty-eight firms have received approval to operate in the Gulf state during that time.
Bahrain - catching up with Malta and Gibraltar
Bahrain is not the only small nation to try its hand at attracting cryptocurrency firms to its shores.
As most countries in the world are yet to formulate any rules governing the nascent industry, a number of tiny jurisdictions have stepped forward in an effort to attract bigger players before anyone else can.
Most notably, Gibraltar, which was one of the first jurisdictions to embrace online gaming in the 1990s, has created a distributed ledger technology, or DLT, license for companies working in the blockchain space.
Malta has also embraced the technology and put forward a number of regulatory measures designed to attract blockchain firms to set up shop in the island nation.
Once a hub for the financial services industry in the Middle East, Bahrain has been losing out to other Gulf nations, particularly Qatar and the United Arab Emirates, in recent years.
Perhaps trying to recover some lost ground, the small island nation is going to be introducing cryptocurrency Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term in the near future.
According to Bloomberg, Bahraini authorities are going to allow cryptocurrency companies to work in the country for a trial period.
During that time, local financial regulators are going to look at how they can develop regulation for digital assets.
News that the Gulf state is trying to attract cryptocurrency firms won’t come as a surprise to many in the digital assets space.
It was only two months ago, after all, that the Central Bank of Bahrain issued some draft regulations for the cryptocurrency industry, with the consultation period ending on December 31.
The regulator’s trial period is set to last nine months. Twenty-eight firms have received approval to operate in the Gulf state during that time.
Bahrain - catching up with Malta and Gibraltar
Bahrain is not the only small nation to try its hand at attracting cryptocurrency firms to its shores.
As most countries in the world are yet to formulate any rules governing the nascent industry, a number of tiny jurisdictions have stepped forward in an effort to attract bigger players before anyone else can.
Most notably, Gibraltar, which was one of the first jurisdictions to embrace online gaming in the 1990s, has created a distributed ledger technology, or DLT, license for companies working in the blockchain space.
Malta has also embraced the technology and put forward a number of regulatory measures designed to attract blockchain firms to set up shop in the island nation.