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Manama, December 7 (BNA): Within the framework of the Central Bank’s efforts to develop the financial technology ecosystem and enhance the competitiveness of the financial services sector, and in line with the Kingdom’s comprehensive strategy to shift towards a diversified digital economy. The Central Bank of Bahrain (CBB) has announced the new regulatory framework that will allow FinTech companies to test and pilot their ideas and solutions related to the sector in a more efficient and effective environment.
Significantly, the new framework enhances the eligibility criteria for participation in the regulatory Sandbox, as well as simplifying the entire Sandbox process to ensure a more incremental and consistent approach to testing support.
The regulatory protection environment, which is open to existing CBB licensors and other local and foreign companies, was first introduced in 2017 in an effort to strengthen the local fintech ecosystem and is overseen by the CBB’s FinTech and Innovation Unit.
Sandbox has gained significant interest from local, regional and global startups and a number of companies have successfully completed testing their solutions.
In this regard, Ms. Yasmine Al Sharaf, Director of the Financial Technology and Innovation Unit at the Central Bank of Bahrain, said: “The revised regulatory framework is a continuation of the efforts of the Central Bank of Bahrain to keep pace with technological developments and to ensure an appropriate ecosystem for the adoption of modern technologies. Banking services through financial technology solutions, The ultimate goal is to promote a culture of innovation in the financial sector and the national economy.
The new framework will facilitate participation and enhance cooperation between startups, financial companies and the sector, in order to provide better financial services in the Kingdom.”
The new regulatory framework, which includes eligibility criteria, registration requirements and a new process, is now available on the CBB website through the following link: https://www.cbb.gov.bh/fintech/
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