The Central Bank of Bahrain (CBB) announced that it has authorized three Regulatory Sandbox applications: Wahed Inc., BitArabia, and Belfric. The authorization allows these entities to test their financial technology (FinTech) solutions in the Kingdom of Bahrain.
Bahrain is becoming an established financial center and one of the leading FinTech hubs in the region, which led to CBB’s decision of implementing a Regulatory Sandbox Framework back in June 2017. As mentioned, the Regulatory Sandbox Framework allows FinTech startups to test their innovative solutions, which in turn helps promote an effective competition, in addition to new technology, financial inclusion and improve customer experience.
But how does the Regulatory Sandbox Framework actually work? The framework provides a virtual space for companies and individuals to test their technology-based solutions for nine months, with a maximum extension of three months. The framework is open to existing CBB licensees and other local and foreign firms.
Ahmed Abdulaziz Al Bassam, Director of Licensing at CBB said: “We welcome the innovations in the Fintech space to choose Bahrain as their potential presence and startups for extending the innovative solutions that will enhance the financial sector’s operations in terms of effectiveness and efficiency.”
He also mentioned that the CBB previously authorized three applications to test their FinTech solutions in the Regulatory Sandbox, those include Tramonex Limited UK, Nowex WLL and Rain Financial.