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Bahrain Grants Regulatory Sandbox License To Crypto Exchange, First In Middle East

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Dubai's Palmex was granted a regulatory sandbox license by the Central Bank of Bahrain (CBB), thus becoming the first cryptocurrency exchange in the Middle East and North Africa region to do so.

Palmex is powered by Dubai-based venture company ArabianChain Technology.

According to its website, the exchange offers "multiple trading pairs including bitcoin and Dubaicoin DBIX, the first decentralized cryptocurrency in the region," in addition to ETH, LTC, and XRP. Fees are divided into three tiers based on monthly trading volume.

Palmex gets the license to operate cryptocurrency exchange at a time the Middle East region has been eagerly waiting for a regulator-approved platform that makes it possible for them to buy and sell cryptocurrencies in a secure environment.

CEO and founder of Arabian Chain, Mohammed Alsehli, said "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."

He added that AlArabianChain will start with a limited number of select users to test and optimize the process.

Palmex has been granted permission to operate from July 15. The Palmex Exchange will test its platform and services in a controlled environment with a live user base.

"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," Alsehli said.

The regulatory sandbox license requires Palmex to adhere to CBB regulations including Know Your Customer (KYC), Anti-Money Laundering user checks and additional Countering Terrorist-Financing measures, as well as follow appropriate disclosure, protection and compensation requirements related to their customers.

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