Is Crypto Legal In Bahrain?

Cryptocurrency is legal in Bahrain and operates under a comprehensive regulatory framework established by the Central Bank of Bahrain. The CBB introduced a clear regulatory framework for crypto-asset services through its Crypto-Assets Module, which provides a legal and operational framework for crypto-assets providers to undertake several activities (1). These activities include reception and transmission of orders, trading as agent or principal, providing investment advice, portfolio management services, custody services, operating crypto-asset exchanges, and acting as digital token advisors.

Bahrain is one of the first countries in the region to implement a comprehensive regulatory framework that fosters growth, trust, and investor protection in the crypto space. The CBB may allow licensed crypto assets providers to provide additional activities beyond the established regulatory framework on a case-by-case basis, considering the emerging nature of the crypto asset industry (1). These regulations aim to ensure transparency, compliance with anti-money laundering laws, and consumer protection while maintaining a supportive environment for innovation in financial technologies.

"By encouraging the development and adoption of innovative financial technologies, the CBB aims to enhance Bahrain's position as a leading financial hub in the MENA region."

In July 2025, the Central Bank of Bahrain introduced a comprehensive framework for licensing and regulating stablecoin issuers through the Stablecoin Issuance and Offering Module. Licensed stablecoin issuers are permitted to issue single currency stablecoins backed by Bahraini Dinar, United States Dollar, or any other fiat currency acceptable by the CBB (2). The new regulation aims to mitigate risks associated with unregulated stablecoins while fostering investor confidence and promoting sustainable growth, demonstrating Bahrain's commitment to integrating crypto-related activities within comprehensive regulatory oversight.

Source:
https://www.bahrain.bh/wps/portal/en/BNP/SiteMap/!ut/p/z1/rVNNc9owEP0r7oGjR2tZyNLRgfKRDnECmARfGFsWoNaWHVBI-u8rLu1g14HOVLcdvbcfb9-iBL2gRKcntUuNqnRa2Hid0I037cOEDQD4klOgGIcEL8Y-RICeLwHeMgZ4Wk3DeTQaekA8lNzCh44Xwm3834DJw-MQaDRhAQ7u_GjlX_Ifn4bY8r3BQzxi3iAi1_j4kt9Ov0IJSmqhcrSmwCURIFyW9TOXkC13ecACl0GfyjwXgSD-GS20qc0erTNdb6TuQZpVb8Yxe-n8UHqXV2UPjm9HkyqdZoV0cnmSRVWXUpvOj-YY7TkvZRgSbLfE5_Ru5sFs7Lf4LcC_raENSD7f8v01na0R1ffX1yS0-lXayA-DXs4Cpoe_CihLedjZwDFS7HVVVDsljz04yCI1MndMVSth46qW2slSfebZGZLPu8BNQMPt3-AK4HwO15RoZOBxPALKxiNCKJsH_QCtrdRBV5MEMHo-KfmOYl0dSnvBiz8GJVjgPBXU5dLru0T6nsszYa0Kgm9znuV4y9AEmhUaZpj63RVuOoH7a2bs2vX_OpaF1KguY_tK5v9Uyk0yOv86Z-_L7X5XbmaGhV9-Aaj6t4U!/?1dmy&page=Content.Details.Page&urile=wcm%3Apath%3A%2Fbnp_en%2Fabout%2Bthe%2Bkingdom%2Fdigital%2Beconomy%2Frelated%2Btopics%2Fcrypto%2Bassets
https://www.cbb.gov.bh/media-center/central-bank-of-bahrain-issues-framework-for-regulating-stablecoin-issuance/

Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.