Currently, Bahrain’s Economic Development Board has sent out invitations to Indian Organizations. This invitation is for the Indian firms to take full advantage of the chances Bahrain is offering India for Cryptocurrency businesses.
Both Indian firms and the board have been collaborating with each other’s government on diverse issues. However, Bahrain’s Central bank has issued its last rules on Cryptocurrency assets.
Invitation To Bahrain
Basically, Indian firms have been invited by Bahrain’s EDB, i.e., Economic Development Board to set up their base in Bahrain. Bahrain is offering diverse opportunities to the financial technology firms in India.
This opportunity centers around;
- Cryptocurrency assets
- Robo advisory and remittances
- Open banking, and so on
EDB is the public agency will the responsibility of bringing investments into Bahrain. And so, they have set out to collaborate with the government of India on diverse business sectors.
They also plan to boost the condition of Indian workers situated in the Gulf state. Moreover, EDB has created offices in both Mumbai and New Delhi.
According to Dalal Buhejji, Senior Manager at EDB, he stated that as of December 2018, there was a road show held in Mumbai to attract the attention of financial technology companies.
Also, Simon Galpin; Managing Director of EDB, stated that Bahrain is looking forward to not only tap into startups emerging from cities in India but also the established companies.
Furthermore, he made mention that Bahrain is a huge test market for companies interested in establishing themselves outside India.
Cryptocurrency Regulation Of Bahrain
On the 25th of February, CBB; Central Bank of Bahrain issued the last rules on different activities related to Cryptocurrency assets. These Cryptocurrency asset rules center around;
- Lowest capital
- Risk management
- Standards of business conduct
- Conflict of interest avoidance
- Control environment
- Reporting and;
- Cybersecurity for all Cryptocurrency asset activities.
According to the publication issued, these rules also entails the scrutinizing and enforcement standards of portfolio managers, advisers, agents, and custodians.
Meanwhile, the companies certified by the central bank including the Cryptocurrency exchanges will also follow some set of rules. The rules they are to follow centers around;
- Pre and post-trade clarity
- Steps to avoid market control and abuse
- Order matching
- Conflicts of interest, and so on
According to the EDB, there are diverse benefits available for the companies that are moving to Bahrain.
Among these benefits are; easy certification procedures for the foreign corporations, incentives for taxation, a conducive environment and infinite accessibility to Middle Eastern and Gulf markets.
EDB goes on further to state that they are looking forward to building an enabling community for startups which include viable monetary options.
As at December 2018, the Indian state of Maharashtra’s government signed an MOU; memorandum of understanding with the EDB. This signing was to offer a cooperative framework to boost the financial technology sector in the two countries.
Through this agreement, the two governments will collaborate in motivating delegation visits, financial technology educational programs, and cooperation between monetary institutions, government agencies, universities, and startups.