The industry of Blockchain and Cryptocurrency, after gaining significant impact over the economics of the world, has reached a very crucial point. The global market is not evolving fast enough to deferring large financial for blockchain and Cryptocurrency and preventing major companies to support their claims. Some of the development had made investors progressively familiar with this fact that they must not take any using or buying digital currency decisions for granted.
Undoubtedly, economic experts are confident about the hidden potential and power of this Cryptocurrency. Everyone is aware of the fact that it can bring solutions to many real-time issues and will earn its place in our everyday lives.
However, some popular events occurred in 2018 had turned the global eyes to the Middle East in regards to the development of Cryptocurrency. The event that earned the first place in the list is the launch of Emirates Blockchain Strategy 2021 in UAE in April 2018. This event highlighted the aim of the government – to switch 50 percent of their transactions onto the blockchain. With this significant change, UAE will be capable of saving 77 million working hours every year and 11 billion in transaction costs.
Two Popular Jurisdictions in the Middle East
There are two jurisdictions present in the Middle East that have sought to codify regulations of crypto exchanges, white label cryptocurrency exchange companies, crypto assets, and related businesses.
- The Abu Dhabi Global Market (ADGM) – A free zone in the Emirate of Abu Dhabi in the United Arab Emirates
- The Kingdom of Bahrain
ADGM
ADGM has managed to be the first regulator in the region and has issued Guidelines on Regulation of ICOs and virtual currencies on 9 October 2017. And on 25 June 2018, this jurisdiction has also issued guidelines on Regulation of Crypto Asset Activities.
The ADGM is currently licensing crypto-asset exchanged and has managed to become the first jurisdiction in the UAE to permit such a license.
However, opening a crypto-asset exchange in the ADGM is time-consuming, complicated, and expensive. ADGM aims to set the highest standard for crypto-asset regulation in the Middle East.
The authorization fee for crypto-asset exchange is $125,000. Additionally, license holders have to pay $60,000 per year as a supervision fee.
The Kingdom Of Bahrain
Middle East Bahrain has already launched several initiatives, including Central Bank of Bahrain Regulatory Sandbox (launched in May 2017), and Bahrain FinTech Bay – a fintech ecosystem established on 30 Aug 2018.
In February 2019, Bahrain managed to become the first Middle Eastern country that published regulations on crypto assets in the form of a crypto module of the Bahrain Rulebook’s Central Bank. This Bahrain or directive governs matter regarding compliance, licensing, risk mitigation, security, and issues licenses for several regulated crypto asset services.
Now, let’s discuss crypto regulations in different regions.
Bahrain
Crypto Regulatory Sandbox– 30 companies are approved by the Central Bank of Bahrain (CBB) for its regulatory sandbox; half of them are Cryptocurrency service providers including exchanges. The Bahraini Regulatory Sandbox permits companies to test their technology-based innovations solutions that are relevant to fintech or the financial sector.
In Bahrain, the governor of the Central Bank has issued a warning against cryptocurrencies like bitcoin. A significance parliamentary session took place in the Shura Council, the governor of the Central Bank announced that the bitcoin is not recognized by any sort of financial institution. He also declared that using bitcoin in Bahrain is not legal; nonetheless, Bharani citizens have the right to make investment in cryptocurrencies outside the limits of Bahrain.
Trading Ban – No
Banking Ban – NO
Tax Haven Region- No
Best Place for License- No
