UAE crypto firm wins CBB’s regulatory sandbox licence
The Central Bank of Bahrain (CBB) has granted a regulatory sandbox licence to Palmex, a professional digital asset exchange powered by ArabianChain Technology. The move, effective July 15, according to the Dubai-based blockchain startup, also makes it the first and only cryptocurrency exchange in the Middle East and North Africa to receive a regulatory sandbox licence.
A regulatory sandbox is a framework and process that facilitates the development of the financial technology (fintech) industry in a safe and calculated way.
Commenting on the milestone, ArabianChain founder and CEO Mohammed Alsehli said: “ArabianChain will start with a limited number of select users to test and optimise the process and then expand to the rest.”
Whilst in the regulatory sandbox, companies are required to adhere to CBB regulations including Know Your Customer (KYC), Anti-Money Laundering and Countering Financing of Terrorism, as well as follow appropriate disclosure, protection and compensation requirements related to their customers.
Alsehli added: “The wild fluctuations and phenomenal surge in valuation of cryptocurrencies like Bitcoin have continued to drive exponential growth in demand to trade and issue digital assets. The region has been eagerly waiting for a regulator-approved platform that makes it possible for them to buy and sell in a secure environment.”
Related Posts