Powered by ArabianChain Technology, the startup is the first digital currency exchange in the region, just as ArabianChain is the first public and decentralized blockchain. It offers “advanced trading tools, multiple cryptocurrency pairs, rigorous security measures and low trading fees.”
Palmex was granted the Regulatory Sandbox License by the Central Bank of Bahrain. With the license, Palmex falls under the framework and processes that regulate the fintech sector. Entities within the framework are required to follow rules and meet standards such as Know Your Customer (KYC), Anti-Money Laundering and Countering Financing of Terrorism, and other transparency requirements. It basically serves as a stamp of approval, giving the digital currency exchange legitimacy in a world where cryptocurrency is still struggling to cement its credibility.
This development is an encouraging one for the startup and blockchain sector in the MENA region.
ArabianChain founder and CEO Mohammed Alsehli expressed his sentiments on the matter:
When we launched Palmex, we did so with the conviction that regulatory status is fundamental to our future and the future of the industry. 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.
Palmex’s license will take effect on July 15.