CBB to regulate all digital security token offerings
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
All Digital Token offering that exhibits the characteristics of security will be subject to Bahrain’s regulatory framework for crypto-assets activities, announced the Central Bank of Bahrain.
The CBB, in a statement, said, will assess the token’s underlying economic purpose, structure, characteristics, and attached rights to determine whether it qualifies as a security.
The move follows amendments to the CBB’s Crypto-assets (“CRA”) Module in March 2023, which came after consultations with industry stakeholders.
The CBB said its objective is to enhance the protection of client assets and ensure that investors receive high levels of safeguarding.
Additionally, the amendments permit crypto-asset licensees, subject to CBB approval, to engage in activities beyond the stipulated regulated crypto-asset services.
Director of the Capital Markets Supervision Directorate – Abeer Al Saad, stated: “We endeavour to provide adequate safeguards to investors without inhibiting innovation adoption at the CBB, as we continue to monitor market trends and review the regulatory framework to keep up with the latest developments in the field, as well as maintain the competitiveness of the sector.This milestone is a reflection of the pioneering role the CBB continues to play in regulating cryptoassets.”