Cryptocurrency exchange Palmex gets Bahrain regulatory approval
Palmex digital asset exchange gets licence from CBB regulatory sandbox program
Palmex has become the first and only cryptocurrency exchange in the Middle East to gain a regulatory licence.
The digital asset exchange has been granted a Regulatory Sandbox Licence by the Central Bank of Bahrain (CBB) as part of its Fintech sandbox program.
Palmex was launched by startup ArabianChain Technology in October, to serve the Middle East and North Africa region.
To qualify for the licence, Palmex had to undergo a rigorous application process that verified its security systems, policies, processes and controls to protect customers. Whilst in the regulatory sandbox, companies are required to adhere to CBB regulations including Know Your Customer (KYC), Anti-Money Laundering and Countering Financing of Terrorism, as well as follow appropriate disclosure, protection and compensation requirements related to their customers.
The CBB launched its fintech regulatory sandbox in June last year, to allow startups in the financial sector the ability to test new banking and financial business models.
ArabianChain founder and CEO Mohammed Alsehli said: "When we launched Palmex, we did so with the conviction that regulatory status is fundamental to our future and the future of the industry. Our team has put in a lot of time and resources into working with regulators to ensure we are compliant, and we are excited to give our users an added level of confidence in using Palmex with this extra layer of legitimacy. ArabianChain will start with a limited number of select users to test and optimize the process and then expand to the rest."
Alsehli added: "As the only regional digital asset exchange with a Sandbox license, we expect to see a significant rise in awareness and adoption, driving a huge spike in the number of trades and token-based fundraising across the region while maintaining the safety of the financial system. The wild fluctuations and phenomenal surge in valuation of cryptocurrencies like Bitcoin have continued to drive exponential growth in demand to trade and issue digital assets. The region has been eagerly waiting for a regulator-approved platform that makes it possible for them to buy and sell in a secure environment. Palmex is set to play a key role in disrupting the traditional financial system as we continue to fuel the region's innovation-driven economy and the global blockchain industry."