Financial crimes warning

TDT | Manama

A Bahraini lawmaker has warned that the unorganised and ungoverned trade of digital currencies in Bahrain and other countries in the region, away from regulatory systems, may allow for countless illegal practices. This was stated by MP Abdulla Al Thawadi, who underlined that the government and legislators in the Kingdom and GCC states must introduce necessary laws and legislations to regulate this new field.

Al Thawadi, who is also a representative of Bahrain at the GCC Supreme Council Advisory Board, cautioned that the unregulated trade of digital currencies in the region allows several financial crimes to grow, such as black markets and money laundering.

The MP also pointed out the high investment risks in this fairly-new trade, and he additionally warned that fake and fraudulent companies are rapidly spreading in the field, consequently exposing small investors and beginners to great danger and large losses, especially in the absence of any legal protection.

“This is a very complex issue that needs a lot of awareness and legislative cover to organise,” Al Thawadi commented. Moreover, the MP called for intensifying joint work between executive and legislative authorities to create new laws so that there will be better supervision of developments in the financial sector and a regulation that allows for safe trading of digital currencies.

Al Thawadi said: “The acceleration witnessed globally in the launch of digital currencies in various ways must have strict laws that ensure the existence of penalties for those who violate the regulations while involved in digital trading. “This would strengthen efforts exerted to combat money laundering and would eliminate black markets.

“Such entities operate away from official supervision and are contrary to the laws in all countries that fight crimes of money laundering, which is an essential practice for terrorist organisations and drug traffickers.”