February 22, 2019, | AtoZ Markets - Recently, the editors of AtoZ Markets covered an article about Bahrain’s crypto regulation pilot. Since, the Bahrain's government wants to determine how to regulate cryptocurrencies and open doors to the blockchain sphere. Established in February 2019, the Bahrain FinTech Bay already attracted over 30 companies that are dealing in the blockchain, cryptocurrency, digital payments, and financial technologies. Also, the Central Bank representatives noted that it had already issued a draft of rules for crypto asset platform operators.
Bahrain Was Already interested in Crypto for Many Years
Bahrain, located on the archipelago in the Persian Gulf in South-West Asia, has long shown interest in bitcoin and cryptocurrencies. The government of the country expects to assume the role of the leader in the field of cryptocurrency innovations. The head of the Bahrain Economic Development Bureau (EDB Bahrain), Khalid Al Rumaihi, said that the country has long been interested in the blockchain sector. He hopes that Bahrain will be able to issue bonds pegged to digital currencies. Moreover, the local press reported that:
“Other Gulf countries have announced plans to develop a regional fintech ecosystem. For example, the free financial zone Abu Dhabi Global Market (ADGM), located in the UAE, announced the creation of a fintech regulator and the signing of agreements with a number of players in the space. ”
Interview: Why Bahrain's Crypto Regulation Pilot Is a Game Changer?
To have a clearer picture of the crypto market developments in Bahrain, AtoZ Markets team interviewed Irina Duisimbekova. She is the co-founder of Cryptoxygen, a crypto exchange which sealed a partnership with the hardware manufacturer Thomson Computing. The company plans to open a branch in Bahrain, and understands why this country has the potential to become a blockchain hub. AtoZ Markets' editor, Maya Mandz had the following conversation with Irina Duisimbekova, who lived in Bahrain for over 17 years:
Maya Mandz: Bahrain plans to regain its position in the financial markets and has now allowed crypto related companies to work in the country on a trial basis. As the country needs learn and determine on the regulation of these digital assets. Do you think that this is the right move of the government of Bahrain?
Irina Duisimbekova: “Yes, it is. Especially, through its FinTech and blockchain programs, Bahrain wants to become in a short time the regional hub of technology. Attracting talents and startups from all around the world.”
Maya Mandz: How does Bahrain's crypto regulation pilot impact the overall business sector of the country?
Irina Duisimbekova: "Already several local incubators have been launched, attracting and supporting technological innovations and investors through the synergy and international network. All these startups and new investors highly use local services and support, which is boosting the service industry in Bahrain. Additionally, through the geographical location as well the series of international agreements, such as FTA or GAFTA, Bahrain offers a real international presence in the sector and in the market."
Maya Mandz: Does this development in Bahrain open new doors for Cryptoxygen?
Irina Duisimbekova: “Indeed, we are very keen to discuss with all FinTech actors and authorties (CBB, Fintech Bay, EDB,..) to see possible synergies to set up our branch here, taking into account that we have been living here for last 17 years and doing business. Cryptoxygen being 50% partner of the French Group Thomson Computing, we definitely encompass a vision of cooperation between Station F, for example, and its startups with potential Bahrain development through Cryptoxygen. We have always been the major actors of the French Bahraini cooperation.”
Maya Mandz: Do you recommend FinTech startups to open a business in Bahrain?
Irina Duisimbekova: "This development, of adding crypto regulation, marks another step in Bahrain's government program to reinforce the business sector in the country. Therefore, it makes the kingdom highly attractive for new technologies and foreign investors. This proactive approach of the Bahrain government also lead us, to build locally already four companies! Since the business environment for startups are very friendly, as there are no corporate or income tax, simple registration, EDB Bahrain support, Tamkeen financial support programs and coupled with the local talents, it is a great place for any FinTech startup."
What do you think? Let us know in the comments section below.