Crypto Exchange Palmex Receives Regulatory Sandbox License From Central Bank Of Bahrainbr>
Dubai-based cryptocurrency exchange Palmex has obtained a Regulatory Sandbox License from the Central Bank of Bahrain (CBB), becoming the first crypto exchange in the Middle East and North Africa region (MENA) to receive such license.
Palmex offers “multiple trading pairs including bitcoin and Dubaicoin DBIX, the first decentralized cryptocurrency in the region,” in addition to ETH, LTC, and XRP. Palmex is a product of the Arabianchain Technology, a UAE-based venture company that enables governments, businesses, and individuals to build their transactions and contracts on the blockchain.
The CBB granted the license to Palmex under the sandbox regulation framework, which was launched in June 2017. The regulatory sandbox creates a virtual space for FinTech firms to trial and refine innovative products, services, platforms and business models in a live but controlled environment. While in the sandbox, companies are required to adhere to CBB regulations including know your customer (KYC), anti-money laundering (AML) and countering financing of terrorism (CFT), and follow appropriate disclosure, protection and compensation requirements related to their customers.
Palmex said that they recieved the license following a “rigorous application process” that verified its security systems, policies, processes and controls to protect customers.
“When we launched Palmex, we did so with the conviction that regulatory status is fundamental to our future and the future of the industry,” said ArabianChain founder and CEO Mohammed Alsehli. “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 that as the only regional crypto exchange with a sandbox license, they expect to see a huge spike in the number of trades and token-based fundraising across the region.
“The wild fluctuations and a phenomenal surge in valuation of cryptocurrencies like bitcoin have continued to drive exponential growth in demand to trade and issue digital assets,” Alsehli said. “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.”