Latest news with #MohamedAlSadek
Biz Bahrain
2 hours ago
- Business
- Biz Bahrain
Central Bank of Bahrain Issues Framework for Regulating Stablecoin Issuance
The Central Bank of Bahrain (CBB) 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 (BHD), 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. Commenting on the new regulations, Mr. Mohamed Al Sadek, Executive Director of Market Development at CBB 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.' Mr. 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.' 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. The new 'Stablecoin Issuance and Offering (SIO) Module' can be found in Volume 6 (Capital Markets) of the CBB Rulebook on CBB's website
Daily Tribune
19 hours ago
- Business
- Daily Tribune
Crypto Clarity
TDT | Manama Gulf's First Rulebook for Digital Money Bahrain has become the first country in the Gulf to issue clear rules for a new kind of digital money known as stablecoins, a move that puts it ahead of neighbours in safely managing digital finance. Stablecoins are a form of online currency tied to regular money like the US dollar or Bahraini dinar. People use them for quick, low-cost transactions, including sending money across borders. But without proper rules, these digital coins can be risky. To fix that, the Central Bank of Bahrain (CBB) has launched a new rulebook that tells companies how they can issue these coins safely. The rules say each digital coin must be backed by real money held in reserve and must be easy to convert back to cash. Companies must also be audited and follow strong safety and transparency standards. 'This milestone reflects the pioneering role the CBB continues to play,' said Mohamed Al Sadek, Executive Director of Market Development. The rules do not allow risky types of digital coins, such as those that rely on complicated software tricks to stay stable, one of which infamously crashed in 2022. While the UAE regulates some digital money, Bahrain is the first to publish a full guide for companies wanting to offer them in different currencies.
