While the central banks of some countries are being strict with cryptocurrency exchanges, a Dubai-based cryptocurrency exchange has given a regulatory sandbox license to operate as the first crypto exchange in the Middle East and North Africa (MENA) region. The exchange Palmex was granted the license by the Central Bank of Bahrain and will take effect this week.
Palmex will be offering “multiple trading pairs including bitcoin and Dubaicoin DBIX, the first decentralized cryptocurrency in the region,” as well as ETH, LTC, and XRP. Transaction fees will be divided into three tiers based on monthly trading volume.
The licence will be effective by June 15, 2018. The essence of the licence is to create a safe place for virtual businesses to “trial and refine innovative products, services, platforms and business models in a live but controlled environment…giving regulators time to adapt legislation as needed,” The Dubai International Financial Center (CPI Financial) explained. They further elaborated, “Companies will also be able to apply to list their tokens and coins with Palmex and benefit from the compliance of the exchange.”
Arabianchain Technology the venture company of the exchange is claimed to be “the first public, decentralized and consensus-driven blockchain in the MENA region.” CEO and founder of Arabianchain, Mohammed Alsehli explains that the company, “will start with a limited number of select users to test and optimize the process and then expand to the rest.” Mohammed believes that “a significant rise in awareness and adoption [of cryptocurrency] could be expected, driving a huge spike in the number of trades and token-based fundraising across the region while maintaining the safety of the financial system.”
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