The Central Bank of Bahrain (CBB) is a fan of cryptocurrency. So much so that the firm is now unveiling Coin MENA, a new cryptocurrency exchange.
Coin MENA Is Here for All Eager Traders
What’s the big clincher? The exchange is compliant with Sharia law. The trading platform has recently received its new “Crypto Asset Services Company License – Category Two” and will begin paving a path for users to trade, purchase and sell digital currencies within the Middle Eastern nation of Bahrain.
The firm has also garnered the greenlight from what’s known as the Shariyah Review Bureau, an organization that ensures all new businesses meet the standards set forth in terms of the national religion. Cryptocurrency has often been a center of controversy from those who strictly follow these standards, though every now and then, a digital trading enterprise gets a smile instead of a frown.
At the start, Coin MENA’s offerings will be rather limited, and the trading platform will only permit the selling and buying of bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), bitcoin cash (BTC) and Ripple (XRP). The company has mentioned that more coins will be introduced in the future.
The company is also looking to provide what’s called an “OTC desk.” The product will overlook large transactions and provide trading managers – in other words, certified middlemen – to oversee that these transactions occur properly and without issue. This could potentially be a big “attractor factor” for new institutional players.
As it stands, residents of Bahrain, the United Arab Emirates (UAE), Kuwait, Oman and Saudi Arabia will be permitted to take part in trading through Coin MENA. The co-founder and managing director of the company Dina Sam’an explained in a statement:
Obtaining the license from the Central Bank of Bahrain allows us to operate under one of the most robust and globally-renowned digital assets regulatory frameworks where governance, security and customer protection are central to all our operations. As Coin MENA grows, we will be providing access to additional digital assets and expanding the jurisdictions we operate in, with the view of becoming one of the leading digital asset exchanges on a global scale.
Could the Bank’s Authority Get in the Way?
On the one hand, it’s positive to see crypto trading get the go ahead in this part of the world, though it’s a little disconcerting to know that crypto activities will be overseen by a central bank. This could potentially backfire in that most cryptocurrencies are designed to be decentralized, or rather placed in the hands of the people that use them instead of standard institutions.
The goal is to enable all citizens looking to utilize cryptocurrencies, though it’s possible the bank might have other ideas. In addition, with Ripple’s present legal troubles brought on by the SEC, Coin MENA may have to say goodbye to XRP trading not long after it becomes fully open for business.
