Bahrain Grants Regulatory Sandbox License To Crypto Exchange, First In Middle East
- Dubai’s Palmex was granted a regulatory sandbox license by the Central Bank of Bahrain (CBB), thus becoming the first cryptocurrency exchange in the Middle East and North Africa region to do so.
- Palmex is powered by Dubai-based venture company ArabianChain Technology. Read more…
The Dubai-based cryptocurrency exchange, launched in October by startup Arabian chain Technology, seeks to serve people in the Middle East and North Africa region. The firm has been waiting for the authorities to grant them the license in order to fully exercise their operations.
Authorities conducted a full investigation on the company on its compliance with existing regulations. Palmex operator went through a rigorous application process to verify their security systems, policies, processes and controls to protect customers. Companies operating under the Regulatory Sandbox License are required to adhere to CBB regulations, including developing Know Your Customer (KYC), anti-money laundering (AML) and counter-terrorism financing (CTF) measures. They also need to follow appropriate disclosure, protection and compensation requirements related to their customers.
Once the license becomes effective on July 15, companies will be able to list their tokens and coins with the exchange. However, the company will only allow a limited number of selected users to test and optimize the process. After the test period is over, Palmex will then allow all the other businesses to list their operations with them.
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