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Welcome to the latest edition of Law Update titled “Rise of Generative AI.”
In this edition, we dive into the dynamic world of Technology, Media, and Telecommunications (TMT) across the Middle East and North Africa (MENA) region. TMT continues to play a vital role in positioning the region as an international business and social hub, driving significant growth and innovation.
Our focus in this Law Update is on the sector’s ongoing potential to advance and propel the region toward a more digital economy. We explore the benefits of embracing a digital transformation and how local authorities have responded by enhancing regulations to accommodate the evolving TMT landscape.
This edition covers a range of topics, including – the new Telecommunications & Information Technology Law in Saudi Arabia, the intricacies of trademarks in the Metaverse, and the legal challenges faced by the video game industry. Additionally, we take a regional perspective, discussing jurisdictions such as Kuwait, Saudi Arabia, UAE, Oman, and Bahrain to provide a comprehensive understanding of the TMT landscape.
We hope you thoroughly enjoy this packed issue of Law Update, filled with captivating articles that address key legal issues within a vital sector for the region.Read the full edition
In March 2023, the Central Bank of Bahrain (“CBB”) issued amendments to the crypto asset module (“CRA Module”) of Volume 6 (Capital Markets) of the CBB rulebook.
The amendments include:
With the new amendments, the CRA Module introduces a regulatory framework governing the offerings of “Digital Tokens” (that are defined as “asset or utility tokens that satisfy the definition of securities under the CBB law, its implementing rules and regulations.”) in or from Bahrain. The CBB’s definition of Securities now includes an additional limb that provides “crypto-assets which exhibit characteristics similar to securities such as (i) a crypto-asset which gives right to a financial entitlement, either in form of a pre-determined cash flow (similar to bonds) or a share in profit (similar to equities); (ii) a crypto-asset which grants decision power in a project to its holders (similar to voting rights) or (iii) a crypto-asset which represents a monetary claim on the issuer.” In determining whether a Digital Token qualifies as a security, the CBB will examine the underlying economic purpose of the Digital Token, its structure, characteristics, as well as the rights attached to the Digital Token.
The amendments to the CRA Module also include the introduction of cyber security control guidelines to enhance the protection of clients’ assets.
The amendments also permit crypto-assets licensees to engage in additional activities, which are not within the stipulated regulated crypto-asset services after obtaining the CBB’s approval.
The changes to the CRA Module should further develop the crypto-asset in Bahrain by catering to the ongoing developments in the crypto-assets markets and complying with the industry best practices while protecting customers interests.
Al Tamimi and Company’s Banking and Finance team regularly advises on regulatory matters and is well placed to assess the opportunities derived from these amendments. If you would like to further discuss the contents of this article and find out what it means for your business, please contact Al Tamimi and Company in Bahrain.
Partner, Banking & Finance
(Bahrain, KSA and UAE)
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