At a time when the cryptocurrency ecosystem is struggling to free itself from the grips of a lengthy bear market, oil-rich Bahrain is making plans to put in place amenable laws that would attract bitcoin-related firms to the region.
For starters, SprinkleXchange, a blockchain-powered multinational asset exchange is set to launch operations in the nation this month, reports Bloomberg on February 20, 2019.
Luring Crypto Firms with Friendly Regulations
Per sources close the matter, in a bid to regain its past glory, washed away by the slump in the global prices of crude oil, Bahrain, a tiny Asian nation with a population of less than 1.7 million people, has revealed plans to regulate its cryptocurrency industry in a way that would make it easier for distributed ledger technology (DLT) based firms to thrive in the region.
Speaking on the latest development, Dalal Buhejji, business manager at the Economic Development Board of Bahrain, reportedly hinted that she’s quite sure that the nation’s apex bank is making serious plans to entirely regulate the space, though a specific timeline is yet to be set.
The Bahraini Crypto Sandbox
According to Bloomberg, Bahrain’s central bank has created a cryptocurrency sandbox that allows crypto-linked firms to launch operations in the region, servicing only a limited number of clients.
The sandbox makes it easier for firms to enter the region’s crypto markets without running afoul of local laws.
Given that a significant number of nations in the Asian continent including Japan and South Korea who have avoided China’s stance on crypto, Bahrain’s move looks to join similar forward-thinking maneuvers.
SprinkleXchange Goes Live
Notably, an impressive 28 crypto-based startups have reportedly taken advantage of the central bank’s regulatory sandbox to pitch their tents in crypto-friendly Bahrain, as the regulator works around the clock to formulate robust guidelines for the space.
Accordingly, SprinkleXchange, a platform that claims to be the world’s first borderless and licensed initial public offering (IPO) platform powered by blockchain technology, will begin operations before the end of February, with an initial cap of ten listings.
While Bahrain is hard at work trying to become a formidable force in the cryptospace, the nation has also embraced the nascent blockchain technology.
As reported by BTCManager in May 2018, Bahrain unveiled a new driver’s license issuance system powered by DLT.