Bahrain is expected to witness significant advancements in blockchain for financial inclusion, asset tokenisation and digital currencies for cross-border transactions. - Ali Jamal

As Chief Executive Officer of Cryptos Consultancy, Ali Jamal discusses Bahrain’s progressive Fintech landscape as part of our exclusive feature, shedding light on innovation, blockchain trends and regulatory advancements.

What is the current regulatory environment for Fintech in Bahrain?
Bahrain has emerged as a frontrunner in Fintech innovation within the MENA region, largely due to its progressive regulatory framework. The Central Bank of Bahrain (CBB) has struck a remarkable balance between encouraging innovation and maintaining strong compliance and security measures. A standout initiative, the Regulatory Sandbox, provides businesses with a controlled environment to test innovative technologies such as blockchain and cryptocurrencies, allowing them to operate while adhering to regulatory standards.

An example of Bahrain’s forward-thinking approach is the licensing of crypto.com, which facilitated the launch of the region’s first crypto card in collaboration with MasterCard. This move significantly enhanced Bahrain’s standing as a leading Fintech hub. At Cryptos Consultancy, we leverage Bahrain’s favourable regulatory landscape to guide clients in navigating compliance requirements, enabling them to innovate with confidence and align with the highest regulatory standards.

What role does CBB play in fostering the growth of cryptocurrency and blockchain-related services?
Its Crypto-Assets Regulatory Framework ensures that crypto-asset service providers operate under a clear, internationally compliant regulatory structure, with an emphasis on Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT). 

This initiative exemplifies Bahrain’s commitment to fostering innovation while maintaining the highest regulatory standards. At Cryptos Consultancy, we help our clients navigate the CBB’s regulations, ensuring they remain compliant while capitalising on the growth of the blockchain sector in Bahrain.

What are the emerging Fintech trends in Bahrain, particularly concerning blockchain, DeFiand digital payments?
The landscape is rapidly evolving, with significant developments in decentralised finance (DeFi), blockchain applications in supply chain management and digital payments. 

Additionally, blockchain is increasingly being used in supply chain management to enhance transparency and efficiency, which bolsters Bahrain’s position as a regional logistics hub. DeFi platforms are gaining traction, offering businesses innovative ways to access capital through decentralised markets. At Cryptos Consultancy, we help our clients stay informed on these emerging trends, providing the insights needed to remain compliant and succeed in the rapidly changing Fintech landscape.

How do you see the adoption of cryptocurrencies evolving among Bahraini businesses and individuals, and what challenges need to be overcome to increase its mainstream use?
Cryptocurrency adoption in Bahrain is on the rise, with increasing numbers of businesses integrating crypto payment solutions and individuals investing in crypto assets. The CBB’s proactive approach, including the Regulatory Sandbox, has been instrumental in supporting this growth. However, challenges like market volatility, a lack of widespread public education on the benefits and risks of crypto and the development of necessary infrastructure remain.

At Cryptos Consultancy, we assist businesses in navigating the complexities of the crypto landscape by offering tailored compliance strategies and risk management solutions. As the market matures, we expect greater institutional adoption, further supported by robust regulatory frameworks and infrastructure developments.

What types of cryptocurrency products or services are currently in demand in Bahrain, and how does Cryptos Consultancy position itself to meet these needs?
There is a growing demand in Bahrain for licensed cryptocurrency exchanges, digital wallets and tokenisation services as businesses look to incorporate blockchain technology and crypto payment solutions. Cryptos Consultancy is well-positioned to meet these demands by offering a range of services, including jurisdiction selection, licensing and ongoing regulatory compliance support. Our team provides tailored solutions that help businesses navigate the intricacies of the crypto landscape, ensuring they not only comply with regulations but also seize opportunities in this rapidly expanding market.

How is blockchain technology being utilised in Bahrain outside of cryptocurrency, such as in supply chain management, real estate or government services?
Blockchain technology is being applied across various sectors in Bahrain, extending well beyond cryptocurrencies. In supply chain management, blockchain improves transparency and traceability, reinforcing Bahrain’s strategic role as a logistics hub. In real estate, it is used to streamline property transactions, enhancing both security and efficiency. Moreover, Bahrain’s Vision 2030 includes blockchain integration into public services such as digital record-keeping and document verification, spearheaded by the Information & eGovernment Authority (iGA). Cryptos Consultancy assists clients in navigating these blockchain opportunities while ensuring compliance with Bahrain’s regulatory framework.

What distinguishes Bahrain’s Fintech ecosystem from other GCC countries?
Bahrain stands out in the GCC and MENA regions for its forward-thinking regulatory environment, cost-effectiveness and initiatives like the Regulatory Sandbox and Fintech Bay. These programmes offer flexibility to both startups and established companies seeking to scale. Notably, Bahrain is the only MENA country where the Central Bank regulates and issues licenses for crypto-asset providers, granting them access to full banking services. This unique framework positions Bahrain as a dynamic gateway for both crypto and traditional financial services. 

What role do Bahrain’s Fintech accelerators and incubators play in supporting startups, and how can Cryptos Consultancy assist startups in navigating these resources?
Bahrain’s Fintech accelerators and incubators, such as Fintech Bay, play a crucial role in supporting startups by providing mentorship, funding and access to a broad network. These resources are vital for helping startups refine their business models and scale effectively. Cryptos Consultancy supports these startups by offering expert guidance on regulatory processes, ensuring they meet compliance requirements while fully leveraging available resources to thrive in Bahrain’s Fintech ecosystem.

What are your thoughts on the integration of AI and machine learning in Fintech solutions in Bahrain?
AI and machine learning are poised to revolutionise the sector by enhancing predictive analytics, fraud detection and delivering personalised customer experiences. These technologies also support regulatory compliance through automated reporting and advanced risk management tools. At Cryptos Consultancy, we advocate for the integration of AI in Fintech operations, ensuring businesses implement these technologies in line with regulatory standards while driving innovation, security and efficiency.

Looking ahead, what key developments or innovations do you foresee shaping Bahrain’s Fintech sector in the next few years?
In the coming years, Bahrain is expected to witness significant advancements in blockchain for financial inclusion, asset tokenisation and digital currencies for cross-border transactions. With initiatives like the Regulatory Sandbox and Fintech Bay, Bahrain will continue to attract global talent and investment. Programmes such as the 
crypto.com card are reshaping Bahrain’s digital payments ecosystem, and Cryptos Consultancy is dedicated to helping businesses leverage these innovations while maintaining compliance with Bahrain’s evolving regulations. Through strategic partnerships and cutting-edge technologies, we aim to position Bahrain as a leading global Fintech hub.

Anything more to add?
If you haven’t got a blockchain strategy, you haven’t got a future! For firms seeking regulatory advice, licensing or incorporation services for crypto-related activities in Bahrain or the UAE, contact www.cryptosconsultancy.com or email [email protected] for more information.

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