Central Bank Bahrain issued new rules for crowdfunding platform operators – Bits Media

Central Bank of Bahrain (St.) For the first time with 2017 years updated the rules of cryptocrauding and ordered platform operators to convince, that the proposed products take into account the interests of retail customers.

SVV introduces new principles of operations on crowdfunding platforms regarding the placement of proposals and information disclosure. Tasks: Prevention of a conflict of interest, Complex checks of borrowers/issuers on the principle of "Know your client" (KYC), Department of client money from funds of platform operators and other measures, ensuring the safe conduct of activities. The new rules require the operators of crowdfunding platforms to ensure the correspondence of products, offered on the platform, the needs of retail customers.

Commenting on new rules, Director of the regulatory policy department of the SVV Ms. Shirin al Caid (Shireen Al Sayed) stated, that the regulator is trying to do so, In order for the rules to comply with the plan of economic restoration of the financial sector - in connection with the increased demand for new financial products for entrepreneurs and startups.

According to the director, Developing business models, such as cryptocurrency crowdfunding, potentially can provide new alternative sources of financing for new startups and will serve as a catalyst for the growth of such enterprises.

Bahrain became the first country of the Middle East and North Africa, providing the largest crypto -book Binance fundamental approval to work as a supplier of crypto services.