According to Odaily, Bahrain's Minister of Finance and National Economy has announced that the country's central bank is drafting regulations for the issuance of stablecoins. The anticipated regulations aim to reduce transaction costs and expand financial access. This development was revealed in response to a query from MP Hisham Al-Asheeri regarding digital asset regulation.
The minister emphasized that the Central Bank of Bahrain is committed to enhancing the safety of the digital asset space for residents. As the regulatory authority for the financial sector, the central bank is focused on establishing laws and regulations for crypto asset services. These measures are intended to create a secure investment environment that adheres to the highest regulatory standards, thereby mitigating risks associated with trading on unregulated external platforms, which may involve money laundering, fraud, and other issues.
The proposed legislation will empower the central bank to oversee activities and transactions conducted by licensed institutions using blockchain-based transaction tracking tools. Should licensed crypto institutions violate the proposed regulations, the central bank may impose administrative fines, suspend services, or even enforce criminal penalties.