The central bank of Bahrain’s is launching a regulatory sandbox to allow blockchain and crypto companies to work in the country, pending formalized regulations. The news was reported by Bloomberg оn Feb. 20.
Last year, the central bank of Bahrain drafted a proposals directed at regulating crypt asset services. The proposal has since being under deliberations and consultations from different industry expert is currently ongoing.
According to the business manager at Bahrain’s Economic Development Board, the sandbox will enable firms “to test their solution on a limited number of users, with a limited number of transactions.” Buhejji continued that: “the initiative is intended to expedite new companies’ entrance into the market.”
As a result of this delay in coming up with a solid digital assets regulatory frame, the central bank’s new sandbox will give crypto related companies the chance to work within the country on a trial basis. This trial is expected to last about nine months.
The down fall in crude oil price since 2014 has left countries depending on oil, such as Bahrain in mounting debt. To support the country’s ailing economy other members of the United Arab Emirate has pledged to $10 billion in aid.
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