Odaily News Bahrain’s Minister of Finance and National Economy recently disclosed that the country’s central bank is drafting regulations on the issuance of stablecoins, which, once implemented, are expected to reduce transaction costs and expand financial access.
He revealed this in response to a question from MP Hisham Al-Asheeri on digital asset regulation, explaining that the Central Bank of Bahrain has always wanted to make the digital asset space safer for residents.
“The Central Bank, as the regulator of the financial sector, has been working on developing laws and regulations on crypto-asset services to provide a safe investment environment that meets the highest regulatory standards to reduce the risks of trading through unregulated external platforms and their potential for money laundering, fraud and other issues,” the minister explained.
The expected legislation will give the central bank the power to monitor the activities and transactions conducted by licensed institutions using blockchain-based transaction tracking tools. If licensed crypto institutions violate the proposed regulations, the central bank may impose administrative fines, stop the licensed institutions from providing services, or even impose criminal penalties. (Bitcoin.com)