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Bahrain

One regulator, one rulebook: Bahrain licenses crypto firms in four tiers and, since June 2026, its first stablecoin issuer.

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9Crypto-asset licensees on the CBB register (Categories 1 to 4)
1Licensed stablecoin issuer (AX Coin Bahrain)
BD 250,000Minimum paid-up capital for a stablecoin issuer

Bahrain chose to regulate crypto early and through a single authority.

The Central Bank of Bahrain (CBB), which supervises every bank, insurer and securities firm in the kingdom, opened a regulatory sandbox in 2017 and in February 2019 issued a dedicated Crypto-Asset Module (CRA) in Volume 6 of its Rulebook.

That made Bahrain the first Gulf state to put crypto exchanges, brokers and custodians under a nationwide central bank licensing regime.

Read the full story

The module sorts firms into four categories by what they may do, from Category 1 advisers and order routers with BD 25,000 of capital to Category 4 exchange operators with BD 300,000.

Binance Bahrain became the first firm with a full Category 4 licence in May 2022, and home-grown platforms such as Rain and CoinMENA grew up under the same rules.

In April 2023 the CBB added a chapter on digital token offerings, bringing tokenised assets under the same rulebook.

The next step was money itself.

In July 2025 the CBB issued its Stablecoin Issuance and Offering (SIO) Module, which allows fully reserved stablecoins backed 1:1 by the Bahraini dinar, the US dollar or another approved currency, requires redemption at par within five business days, and even permits yield-bearing coins paid from reserve income.

AX Coin Bahrain became the first licensed issuer in June 2026, and by September 2026 the CBB register listed nine crypto-asset licensees.

For builders, Bahrain is a small market with a clear, bank-style rulebook and one regulator to deal with.

Capital thresholds are modest, retail access is allowed through licensed platforms, and the stablecoin module is one of the most detailed in the region.

The trade-off is scale: the domestic user base is small, so most licensees use Manama as a regulated base to serve the wider Gulf.

Who regulates

  • CBBCentral Bank of Bahrain

    In charge of

    Bahrain's central bank and single financial regulator: it runs monetary policy and licenses and supervises every bank, insurer and capital markets firm in the kingdom under the CBB Law 2006.

    On crypto

    Issued the Crypto-Asset Module in February 2019, licensing firms in four categories from BD 25,000 to BD 300,000 of capital; nine were licensed by September 2026. Its July 2025 stablecoin module licensed its first issuer, AX Coin Bahrain, in June 2026.

    CBB website
  • NBRNational Bureau for Revenue

    In charge of

    Bahrain's tax authority: it administers and collects VAT, excise tax and the Domestic Minimum Top-up Tax, and handles tax registration, returns and audits.

    On crypto

    Has issued no crypto-specific tax guidance. With no personal income tax, individuals pay nothing on crypto gains; crypto firms in multinational groups with revenue of at least EUR 750 million face the 15% top-up tax from 2025.

    NBR website

What to watch

  • How many further stablecoin issuers the CBB licenses after AX Coin, and whether a Bahraini dinar stablecoin reaches the market.
  • Use of approved stablecoins for payments, which the SIO Module already tracks through transaction reporting by issuers and crypto-asset licensees.
  • Tokenisation activity under CRA-15 digital token offerings, and the outcome for ATME, which the register marks as under CBB administration.
  • Further amendments to the Crypto-Asset Module after the May 2026 revision that aligned it with the CBB's new financial penalties module.

Quick answers

Who regulates crypto in Bahrain?

Two authorities shape crypto rules in Bahrain. CBB (Central Bank of Bahrain): single regulator for banking, insurance and capital markets; licenses crypto-asset firms and stablecoin issuers under Rulebook Volume 6. NBR (National Bureau for Revenue): administers VAT, excise and the Domestic Minimum Top-up Tax on large multinational groups.

Do crypto exchanges need a licence in Bahrain?

Yes, under a dedicated regime. CBB Crypto-Asset Module since 2019 with four licence tiers; 9 licensees on the register in October 2026. The main licences are Crypto-asset service licence (Categories 1 to 4) from CBB, held by 9 as of 5 Oct 2026; and Stablecoin issuer licence from CBB, held by 1 as of 5 Oct 2026. Four Pillars rates exchange licensing in Bahrain as comprehensive (reviewed 5 Oct 2026).

Are stablecoins regulated in Bahrain?

Yes, under a dedicated regime. SIO Module (July 2025) licenses BHD and USD-backed issuers; AX Coin was the first licensed in June 2026. The most recent official text is Central Bank of Bahrain Issues Framework for Regulating Stablecoin Issuance (Central Bank of Bahrain (CBB), 4 Jul 2025, guidance). Four Pillars rates its stablecoin regime in Bahrain as comprehensive (reviewed 5 Oct 2026).

How is crypto taxed in Bahrain?

No personal income tax; no crypto-specific rules. Four Pillars rates tax clarity in Bahrain as partial (reviewed 5 Oct 2026).

Can real-world assets be tokenised in Bahrain?

Yes, though the regime is narrow or still phasing in. CRA-15 has governed digital token offerings since April 2023, but tokenised issuance remains small. Four Pillars rates tokenisation and real-world assets in Bahrain as partial (reviewed 5 Oct 2026).

What changed most recently in Bahrain's crypto rules?

Jun 2026: First stablecoin issuer licensed. AX Coin Bahrain B.S.C. (c), a subsidiary of Nasdaq-listed Solowin Holdings, became the first CBB-licensed stablecoin issuer. May 2026: Crypto-Asset Module revised. The full module was amended to align with the CBB's new financial penalties framework.

What should companies watch next in Bahrain?

How many further stablecoin issuers the CBB licenses after AX Coin, and whether a Bahraini dinar stablecoin reaches the market. Use of approved stablecoins for payments, which the SIO Module already tracks through transaction reporting by issuers and crypto-asset licensees. Tokenisation activity under CRA-15 digital token offerings, and the outcome for ATME, which the register marks as under CBB administration.

Timeline

  1. First stablecoin issuer licensed

    AX Coin Bahrain B.S.C. (c), a subsidiary of Nasdaq-listed Solowin Holdings, became the first CBB-licensed stablecoin issuer.

  2. Crypto-Asset Module revised

    The full module was amended to align with the CBB's new financial penalties framework.

  3. AX Coin receives in-principle approval

    It was the first applicant approved in principle under the stablecoin module.

  4. Stablecoin Issuance and Offering Module issued

    Licensed issuers may issue single-currency stablecoins backed by the Bahraini dinar, the US dollar or another approved currency.

  5. CBB consults on a stablecoin module

    Circular OG/300/2024 proposed licensing rules for fiat-backed stablecoin issuers.

  6. Digital token offering rules added

    The CBB amended the Crypto-Asset Module with a new chapter, CRA-15, on the issuance and trading of digital tokens.

  7. Binance Bahrain receives the first full Category 4 licence

    Category 4 is the top tier, allowing a firm to operate a licensed crypto-asset exchange.

  8. CBB completes a JPM Coin payments test

    Bank ABC used J.P. Morgan's JPM Coin System to make real-time US dollar payments for aluminium producer ALBA.

  9. CBB issues final crypto-asset rules

    The Crypto-Asset Module set licensing, capital, custody, AML and cyber security rules for crypto services and exchanges.

  10. CBB opens its regulatory sandbox

    Startups and licensees could test financial products, including early crypto platforms, under CBB supervision.

Cite this page: Four Pillars Asia Digital Asset Policy Center, “Bahrain crypto regulation”, reviewed 5 Oct 2026, https://policy.4pillars.io/bahrain. Free to reuse with attribution; also as markdown and JSON.

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