The Central Bank of Bahrain (CBB) has taken over administration of crowdfunding platform operator Safaghat effective yesterday, following observed violations and an investigation, the regulator said in a statement.
The move comes as the CBB addresses investor concerns and aims to maintain transparency and confidence in the financial sector.
The CBB had previously issued directives on January 21 for Safaghat to cease all services and onboarding of new investors.
An independent external expert was appointed on February 9 to review Safaghat’s regulatory compliance.
The CBB is also coordinating with judicial authorities on an ongoing investigation.
The CBB’s decision to assume administration is in accordance with Article 136 of the Central Bank of Bahrain and Financial Institutions Law of 2006, which allows the CBB to take over a licensee that becomes insolvent or harms the financial services industry.
The CBB reaffirmed its commitment to keeping investors informed and urged all parties to refer to its official communication channels for updates.
Investors with inquiries can contact the CBB through the Tawasul system or the CBB’s official website.
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