After Dubai, Bahrain to Fintech digitization

After Dubai, Bahrain is en-route to fintech digitization. In a bid to include Digital Tokens, Bahrain amended its crypto assets framework. The Central Bank of Bahrain amended its Crypto Assets (CRA) module so that it can expand the scope of its digital fintech offerings.

The CBB or Central Bank of Bahrain regulates all digital tokens offered to its end users. The CBB first evaluates the economic purpose of the digital token. Once the first level of scrutiny is over, a digital token’s structure, characteristics, and all rights are examined to ensure that it meets all requirements to qualify as a security.

Main objectives of the amendments:

• Focused to enhance client assets and provide a greater level of protection to investors.
• Additionally, these amendments gave greater control and the benefit of additional functions which are not included in traditional crypto assets services once CBB approval is acquired.
• These amendments are also anticipated to tap the vibrant crypto-assets markets.
• Furthermore, such updations help firms, banks and FIs to stay compliant, thus ensuring greater investor protection.
• Incorporate greater safeguards, without stifling CBB innovation.
• Improve the competitiveness of the sector.
• Regulate crypto assets

Fintech updates from other parts of MENA :

Emirates NBDs strategic partnership with Plug and Play Abu Dhabi

Collaborating with Plug and Play Abu Dhabi, Emirates NBD launched Fintech growth Accelerator. Plug and Play Abu Dhabi is a global innovation forum. The Fintech Accelerator programme is hinged on risk management.

The three challenges that the bank wants to address are-

1. Cyber risk to ensure greater data protection and avert expensive sensitive data breaches.
2. Credit risk to facilitate greater risk assessment by utilizing cutting edge technology and the extensive data now available via integrated legacy software. Designing a more precise credit risk prototype to ensure faster and effective lending decisions.
3. Analyze and identify risks by pooling various sources of risk.

The main objective is to chalk out a more consolidated and cost-effective risk management approach. As of now, multiple rounds of discussions with stakeholders are planned so that a fair and comprehensive evaluation of offerings can happen that can further be juxtaposed with the challenges to see how well the model serves the purpose of risk management.