Fun

Bahrain Central Bank Issues New Regulations Governing Operations of Crowdfunding Platforms

News Feed - 2022-05-01 07:05:43

Bahrain Central Bank Issues New Regulations Governing Operations of Crowdfunding Platforms


The Central Bank of Bahrain (CBB) has said new regulations compelling operators of crowdfunding platforms to ensure their products are suitable for clients are set to replace existing rules which were first issued in 2017. Segregation of Client Money From Platform Operators


The Central Bank of Bahrain (CBB) has issued new guidelines which apply to operators of crowdfunding platforms for the first time since 2017, a statement from the central bank has said. The new regulations cover principles that govern the operations of a crowdfunding platform as well as the rules that apply to offers and disclosures made by a crowdfunding platform.


The new regulations, which are covered under the Crowdfunding Platform Operators Module (Module CFP), also address the “segregation of client money from platform operators and other measures to ensure safe operation of the activity.” Further, the new regulations compel the platform operators “to ensure [the] suitability of the products” that are being offered to retail clients.


In her remarks following the announcement, the CBB’s director of the regulatory policy unit, Shireen Al Sayed, hailed the central bank’s move to improve the provision of financial services. Al Sayed added: Due to the increased demand for introducing new financing products to serve SMEs and start-ups, the CBB has been keen to review the crowdfunding platform operator regulations to be in line with the economic recovery plan for the financial sector in terms of providing a conducive environment for crowdfunding platform operators.


According to Al Sayed, the new regulations are easy to understand and come with minimum safeguards to ensure the crowdfunding platforms do not pose risks to the financial sector. Crowdfunding as an Alternative Financing Route


Another CBB executive, Yasmeen Al-Sharaf, the director of Fintech and the innovation unit, is quoted suggesting that crowdfunding avails an alternative funding source for startups.


“Fintech solutions have the potential to enhance capital flows to the economy commensurate with the growth and expansion plans of entrepreneurs through this new source of funding, thereby, helping to develop the businesses of these start-ups,” Al-Sharaf added.


The CBB concludes its statement by asserting that crowdfunding is an innovative way now used by small and medium-sized enterprises, seed capital, and startup companies that want to get funding. Tags in this story Central Bank, central bank of bahrain, crowdfunding, Crowdfunding Platform Operators Module, fintech solutions, seed capital, Shireen Al Sayed, Yasmeen Al-Sharaf


What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara


Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Uzbekistan President Issues Decree Regulating Cryptocurrencies, Mining and Trading REGULATION | 2 hours ago India Exploring Commercial Uses for Central Bank Digital Currency, Says Finance Minister REGULATION | 16 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSolana Co-Founder Believes Bitcoin Needs to Change to Proof-of-Stake Consensus to Remain Relevant Next articleEurosystem Seeks Providers of Prototype Payment Solutions for Digital Euro Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year


The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Iran to Increase Penalties for Unauthorized Cryptocurrency Mining

News Feed

Ethereum Gas Fees Spike as ETH Value Rises: Average Onchain Fees Jump by More Than 50%
Ethereum Gas Fees Spike as ETH Value Rises: Average Onchain Fees Jump by More Than 50% While the second-largest crypto asset by market capitalization, ethereum, has risen 27% again
Bitcoin’s short-term holder realized price hits $64,000, confirming BTC rally
Nancy Lubale4 hours agoBitcoin’s short-term holder realized price hits $64,000, confirming BTC rallyThis group mainly consisted of those who purchased BTC before and after the approval of the U.S. spot Bitcoin ETF in J
Trezor and Wasabi to Implement a Coinjoin Mixing Scheme Into Hardware Wallets
Trezor and Wasabi to Implement a Coinjoin Mixing Scheme Into Hardware Wallets This week, the hardware wallet manufacturer Trezor, and the non-custodial bitcoin wallet with a built-
US Contract Miner Core Scientific Buys 17,600 Bitcoin Miners From Bitmain
US Contract Miner Core Scientific Buys 17,600 Bitcoin Miners From BitmainU.S. contract mining firm Core Scientific has agreed on a deal to buy 17,600 mining rigs from Chinese bitcoi
US Bond Markets Signal Economic Downturn, Trend Forecaster Says if War Ensues ‘Odds of Recession Increase’
US Bond Markets Signal Economic Downturn, Trend Forecaster Says if War Ensues "Odds of Recession Increase" As Americans continue to deal with rising inflation, on Tuesday the sprea
German Crypto Regulator BaFin Shuts Down Unauthorized Bitcoin ATMs
German Crypto Regulator BaFin Shuts Down Unauthorized Bitcoin ATMs Germany’s Federal Financial Supervisory Authority (BaFin) has shut down unauthorized bitcoin ATMs in the
Large Transaction Volume Crashes 36% In 24 Hours As Dogecoin Price Fails At $0.2, Are Whales Selling?
Este artículo también está disponible en español. The recent Dogecoin price rally appears to be losing steamfollowing an impressive surgethat pushed its price above $0.21
Genesis strikes repayment deal with parent firm DCG to end $620M lawsuit
Jesse Coghlan5 hours agoGenesis strikes repayment deal with parent firm DCG to end $620M lawsuitDigital Currency Group has over $320 million left to repay, according to Genesis, and the deal would see that remaining sum
Murder by (smart) contract: Ari Juels publishes crypto thriller
Andrew Singer9 hours agoMurder by (smart) contract: Ari Juels publishes crypto thrillerA Cornell Tech professor and blockchain luminary has written a cautionary novel about smart contracts gone rogue.652 Total views3 Tot
Helen Partz13 hours agoCommunity reacts to SEC dropping XRP case and LBRY shutdownWhile celebrating a new court win in Ripple’s legal battle with the SEC, the community mourns the demise of LBRY, which some say was “
Bitfinex Swears It’s Trying Super Hard to Block US Bitcoin Traders
Beset with allegations that it is flouting regulations by allowing US bitcoin traders to access its platform, cryptocurrency exchange giant Bitfinex promised that it’s trying super hard to stop that from happeni
US Republicans under Trump include crypto in official party platform
Turner Wright3 hours agoUS Republicans under Trump include crypto in official party platformThe party, which vowed to oppose a CBDC and defend Bitcoin mining, is scheduled to meet on July 15-18 and select a nominee for U