Bahrain first country in MENA to launch onshore security token regulations
Bahrain Central Bank has announced the issuance of regulation for security tokens as amendments to its current crypto asset module. The Central Bank has expanded the crypto asset regulations to include digital token offerings, in specific those with the characteristics of security tokens. In determining whether a digital token qualifies as a security, the CBB will examine the underlying economic purpose of the digital token, its structure, characteristics, as well as the rights attached to the digital token. The new amendments also outline new requirements to enhance safeguarding clients’ assets to provide high levels of protection for investors. In addition the Central Bank of Bahrain will allow crypto-assets licensees (after obtaining the CBB’s approval) to engage in additional activities, which are not within the stipulated regulated crypto-asset services. Commenting on the new amendments, Director of the Capital Markets Supervision Directorate – Mrs....
