A Shariah-Compliant Exchange Licensed by the Bahrain Central Bank
With the cryptocurrency industry gaining a lot of adoption in the entire world, even the gulf region has now started adopting the industry. One of the most prominent countries in the Gulf region in Bahrain is trying to adopt cryptocurrency technology faster than its neighbors.
As per the recent reports, a new cryptocurrency exchange will be launched in Bahrain that will be based in the kingdom of Bahrain. The name of the cryptocurrency exchange startup is CoinMENA and it has already obtained a license from the Central Bank of Bahrain (CBB).
The name of the license that has been granted by the Central Bank of Bahrain (CBB) is “Crypto Assets Services Company License”. The announcement was made by the exchange on January 24, 2021, that the license will prove very beneficial for the exchange in its operations.
The officials of the CoinMENA exchange stated that with the license, the exchange will be able to operate in a fully regulated environment. It will also allow the exchange to provide services to the users on the onshore platform.
The license introduced by the Central Bank of Bahrain (CBB) is known for meeting all the requirements that a crypto-exchange can ask for. The license covers all the aspects that include security, operational, and technical requirements. These are all the requirements that the Central Bank of Bahrain (CBB) puts extra stress on.
It has been revealed by the officials of the CoinMENA exchange that their plan is not just to remain in Bahrain. Their plans are to expand and roll out their services in North Africa, Middle East, or simply put, MENA countries. For now, the exchange is focused on providing its services in Saudi Arabia, Bahrain, Oman, and Kuwait.
However, it is not easy for a typical cryptocurrency exchange to expand its services in Muslim countries. These countries are very conservative and very sensitive about Islamic practices. Unlike Europe, these countries strictly follow the Sharia-law so in order for any exchange to operate, they must be compliant with that as well.
Therefore, keeping the above in mind, the exchange has also acquired the certification from the Shariyah Review Bureau. Now that CoinMENA has acquired the certification, the exchange has now become a regulatory compliant and Shariah-compliant platform.
The CoinMENA officials have revealed that at the time of the launch, the exchange will be supporting major cryptocurrencies. Some of the major cryptocurrencies offered by the exchange would include Bitcoin Cash (BCH), XRP, Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
In order to cater to the larger transactions, CoinMENA will also feature an over the counter (OTC) platform for the users. This will provide users with a dedicated manager that will oversee and monitor every OTC trade.