Bahrain ranks first among GCC countries and seventh globally for its proactive approach to crypto asset regulations, according to Solidus Labs Global Crypto Regulation (GCR) Index.
It rates key countries whose governments lead the way with effective regulations that protect consumers and encourage innovation.
Bahrain is the first country in the GCC to grant crypto-asset provider licences, positioning itself as a major hub for digital currency in the region, the Economic Development Board said in a report.
The Global Index pointed out that the Central Bank of Bahrain (CBB) issued final rules for digital asset service providers and exchanges in February 2019 that created a comprehensive regulatory framework for the digital asset market.
The CBB Rulebook: Crypto-Asset Module (CRA) laid out rules for licensing, governance, minimum capital, risk management, anti-money laundering/combating the financing of terrorism, standards of business conduct, avoidance of conflicts of interest, reporting, and cyber security for digital asset services, among other requirements.
The CRA also framed rules against market manipulation that require digital asset exchanges to “have in place effective systems, procedures and arrangements to monitor and detect market abuse.”
From crypto and the exponential growth of decentralised finance to the dramatic downturn of the past quarter, the rapid volatility of digital asset markets has driven governments globally to respond – through legislative, enforcement, regulatory and/or policy actions, the Global Index noted.
To enable safe crypto markets, Solidus Labs developed the GCR Index to provide a point-in-time snapshot of where digital asset regulations currently stand, ranking countries that have taken effective approaches to regulation to protect consumers.
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