# Bahrain crypto regulation

From the Four Pillars Asia Digital Asset Policy Center. Cite as: Four Pillars Asia Digital Asset Policy Center, "Bahrain crypto regulation", reviewed 2026-10-05, https://policy.4pillars.io/bahrain. Free to reuse with attribution: cite "Four Pillars Asia Digital Asset Policy Center" and link to the page the fact comes from (each market has its own URL), and to the primary source where one is given. Terms: https://policy.4pillars.io/developers#attribution


Page: https://policy.4pillars.io/bahrain
Region: Middle East. Last reviewed: 2026-10-05.

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

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.

### Snapshot

- Exchange licensing: Comprehensive. CBB Crypto-Asset Module since 2019 with four licence tiers; 9 licensees on the register in October 2026
- Stablecoin regime: Comprehensive. SIO Module (July 2025) licenses BHD and USD-backed issuers; AX Coin was the first licensed in June 2026
- Tokenisation & RWA: Partial. CRA-15 has governed digital token offerings since April 2023, but tokenised issuance remains small
- Retail access: Comprehensive. Retail can buy crypto on CBB-licensed platforms such as Rain, Binance Bahrain and CoinMENA
- Tax clarity: Partial. No personal income tax, but no crypto-specific tax guidance; 15% DMTT applies to large MNEs from 2025

### Quick answers

**Is crypto legal in Bahrain?**

Yes. Individuals can buy and sell crypto onshore through licensed providers. Retail can buy crypto on CBB-licensed platforms such as Rain, Binance Bahrain and CoinMENA. Four Pillars rates retail access in Bahrain as comprehensive (reviewed 5 Oct 2026).

**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.

### Key numbers

- 9 Crypto-asset licensees on the CBB register (Categories 1 to 4) (as of 2026-10-05)
- 1 Licensed stablecoin issuer (AX Coin Bahrain) (as of 2026-10-05)
- BD 250,000 Minimum paid-up capital for a stablecoin issuer (as of 2025-07)
- 0% Personal income tax on crypto gains (as of 2026-10-05)

### 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.

### Regulators

- **CBB**, Central Bank of Bahrain: Single regulator for banking, insurance and capital markets; licenses crypto-asset firms and stablecoin issuers under Rulebook Volume 6. 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. 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. <https://www.cbb.gov.bh/fintech/>
- **NBR**, National Bureau for Revenue: Administers VAT, excise and the Domestic Minimum Top-up Tax on large multinational groups. 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. 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. <https://www.nbr.gov.bh/>

### Licences

#### Crypto-asset service licence (Categories 1 to 4)

- Regulator: CBB
- Legal basis: CBB Law 2006; CBB Rulebook Volume 6, Module CRA
- Covers: Category 1 order routing and advice; Category 2 agency trading, portfolio management and custody; Category 3 adds dealing as principal; Category 4 operates a licensed crypto-asset exchange.
- Requirements: Paid-up capital of BD 25,000, 100,000, 200,000 or 300,000 depending on category, paid into a Bahraini retail bank; Only accepted crypto-assets may be offered; exchanges must not trade against clients from proprietary capital; Client assets segregated under the CRA-8 custody rules; Technology governance, cyber security testing and incident reporting to the CBB; Full AML/CFT programme with enhanced due diligence at onboarding
- Holders: 9 (as of 2026-10-05)
- Notable holders: Binance Bahrain B.S.C. (c), Rain Management W.L.L., CoinMENA B.S.C. (c), BitOasis Bahrain W.L.L., ARP Digital Bahrain B.S.C. (c), Fasset Financial Services W.L.L., Waterfort Bahrain B.S.C. (c), ATME B.S.C. (c)
- Official register: <https://www.cbb.gov.bh/licensing-directory/>
- Page: https://policy.4pillars.io/bahrain/licences#lic-1

#### Stablecoin issuer licence

- Regulator: CBB
- Legal basis: CBB Law 2006, Articles 37 and 38; CBB Regulation No. 1 of 2007; CBB Rulebook Volume 6, Module SIO
- Covers: Issuing, offering, minting and burning fiat-backed approved stablecoins in or from Bahrain, and managing and safeguarding their reserve assets.
- Requirements: Bahraini joint stock company with BD 250,000 base capital; equity and liquid assets of at least 50% of annual operating expenses; Single-currency stablecoins backed 1:1 by BHD, USD or another currency the CBB approves; Reserves of at least 100% of stablecoins in circulation, held in custody within five business days of issuance; Redemption at par within five business days; Monthly report by an independent external audit firm confirming full backing of reserves; Published whitepaper and recovery plan
- Holders: 1 (as of 2026-10-05)
- Notable holders: AX Coin Bahrain B.S.C. (c)
- Official register: <https://www.cbb.gov.bh/licensing-directory/>
- Page: https://policy.4pillars.io/bahrain/licences#lic-2

### Timeline

- 2017-06: CBB opens its regulatory sandbox. Startups and licensees could test financial products, including early crypto platforms, under CBB supervision.
- 2019-02-25: CBB issues final crypto-asset rules. The Crypto-Asset Module set licensing, capital, custody, AML and cyber security rules for crypto services and exchanges.
- 2022-01-05: 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.
- 2022-05-24: 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.
- 2023-04: 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.
- 2024-10: CBB consults on a stablecoin module. Circular OG/300/2024 proposed licensing rules for fiat-backed stablecoin issuers.
- 2025-07-04: 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.
- 2026-01-28: AX Coin receives in-principle approval. It was the first applicant approved in principle under the stablecoin module.
- 2026-05: Crypto-Asset Module revised. The full module was amended to align with the CBB's new financial penalties framework.
- 2026-06: 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.

### Primary sources

- [CBB Licensing Directory (CBB Register)](https://www.cbb.gov.bh/licensing-directory/). Central Bank of Bahrain (CBB), 2026-10-05, in force. Official register of licensees. On 5 October 2026 it listed one Category 2, five Category 3 and three Category 4 crypto-asset licensees, plus one stablecoin issuer.
- [Central Bank of Bahrain Issues Framework for Regulating Stablecoin Issuance](https://www.cbb.gov.bh/media-center/central-bank-of-bahrain-issues-framework-for-regulating-stablecoin-issuance/). Central Bank of Bahrain (CBB), 2025-07-04, guidance. Announces the SIO Module, under which licensed issuers may issue single-currency stablecoins backed by BHD, USD or another fiat currency the CBB accepts.
- [CBB Rulebook Volume 6, Module SIO: Stablecoin Issuance & Offering](https://cbben.thomsonreuters.com/rulebook/sio-stablecoin-issuance-offering). Central Bank of Bahrain (CBB), 2025-07, in force. Licensing regime for fiat-backed stablecoin issuers: BD 250,000 base capital, reserves of at least 100% of stablecoins in circulation with monthly independent audit reports, and redemption at par within five business days. First issued July 2025; the current version applies from 6 May 2026.
- [Stablecoin Issuance and Offering Module (July 2025, PDF)](https://cbben.thomsonreuters.com/sites/default/files/net_file_store/Vol_6_SIO_July_2025.pdf). Central Bank of Bahrain (CBB), 2025-07, in force. Full text of the SIO Module as first issued in July 2025. It allows yield-bearing approved stablecoins paid only from reserve income and requires reporting of stablecoin payments for goods and services in Bahrain.
- [Circular OG/300/2024: Consultation on Proposed Stablecoin Issuance and Offering Module](https://www.cbb.gov.bh/wp-content/uploads/2024/10/OG-300-2024-Circular-Consultation-Proposed-Stablecoin-Issuance-and-Offering-Module.pdf). Central Bank of Bahrain (CBB), 2024-10, superseded. The consultation that preceded the final SIO Module, seeking industry comments on stablecoin licensing, reserves and redemption rules.
- [Decree-Law No. (11) of 2024 on the Domestic Minimum Top-up Tax](https://www.nbr.gov.bh/media/Decree_Law_No_11_of_2024_EN). National Bureau for Revenue (NBR), 2024-09-01, in force. Imposes a 15% top-up tax on Bahraini entities of multinational groups with revenue of at least EUR 750 million from 2025. Bahrain otherwise has no personal income tax and no crypto-specific tax rules.
- [CRA-15: Digital Tokens](https://cbben.thomsonreuters.com/rulebook/cra-15-digital-tokens). Central Bank of Bahrain (CBB), 2023-04, in force. Rules for issuing, offering and trading digital tokens, including issuer disclosures, digital token advisers and CBB-approved over-the-counter trading.
- [Central Bank of Bahrain, ALBA, Bank ABC and Onyx by J.P. Morgan complete test with blockchain based JPM Coin System](https://www.cbb.gov.bh/media-center/central-bank-of-bahrain-alba-bank-abc-and-onyx-by-j-p-morgan-complete-test-with-blockchain-based-jpm-coin-system/). Central Bank of Bahrain (CBB), 2022-01-05, guidance. Reports a CBB-backed pilot of real-time US dollar payments over J.P. Morgan's permissioned ledger, which the CBB said it would look to extend to CBDC work.
- [CRA-3: Minimum Capital Requirement](https://cbben.thomsonreuters.com/rulebook/cra-3-minimum-capital-requirement). Central Bank of Bahrain (CBB), 2019-04, in force. Sets paid-up capital by licence tier: BD 25,000 for Category 1, BD 100,000 for Category 2, BD 200,000 for Category 3 and BD 300,000 for Category 4 exchange operators.
- [Central Bank of Bahrain issues final rules on Crypto-asset services and Crypto-asset exchanges](https://www.cbb.gov.bh/media-center/central-bank-of-bahrain-issues-final-rules-on-crypto-asset-services-and-crypto-asset-exchanges/). Central Bank of Bahrain (CBB), 2019-02-25, guidance. Announcement of the Crypto-Asset Module, covering licensing, governance, capital, risk management, AML/CFT, wallet security and trade transparency.
- [CBB Rulebook Volume 6, Module CRA: Crypto-Asset](https://cbben.thomsonreuters.com/rulebook/cra-crypto-asset). Central Bank of Bahrain (CBB), 2019-02, in force. The core crypto regime: licensing, conduct, custody, technology, AML and market abuse rules for crypto-asset services. First issued February 2019; the current version applies from 6 May 2026.
- [CRA-8: Crypto-asset Custody Services](https://cbben.thomsonreuters.com/rulebook/cra-8-crypto-asset-custody-services). Central Bank of Bahrain (CBB), 2019-02, in force. Rules for safeguarding client crypto-assets, including segregation, wallet management and key controls for licensees that hold client assets.
- [CRA-7: Anti-Money Laundering & Combating of Financial Crime](https://cbben.thomsonreuters.com/rulebook/cra-7-anti-money-laundering-combating-financial-crime). Central Bank of Bahrain (CBB), 2019-02, in force. Applies the CBB's AML/CFT rules to crypto-asset licensees; since January 2020 it states that simplified customer due diligence is not allowed.
- [CRA-12: Conduct of Business Obligations](https://cbben.thomsonreuters.com/rulebook/cra-12-conduct-business-obligations). Central Bank of Bahrain (CBB), 2019-02, in force. Conduct rules for licensees on conflicts of interest, sales processes and selling practices, and best execution of client orders.
- [CRA-13: Prevention of Market Abuse and Manipulation](https://cbben.thomsonreuters.com/rulebook/cra-13-prevention-market-abuse-and-manipulation). Central Bank of Bahrain (CBB), 2019-02, in force. Prohibits market manipulation and insider dealing in crypto-assets and requires licensed exchanges to monitor trading for abuse.
- [FinTech & Innovation: Regulatory Sandbox](https://www.cbb.gov.bh/fintech/). Central Bank of Bahrain (CBB), 2017-06, guidance. The CBB's FinTech & Innovation Unit page, covering the regulatory sandbox for testing new financial products and the FinHub 973 digital lab.