Bahrain has introduced a landmark regulatory framework for stablecoins, becoming one of the first Middle Eastern countries to formally govern digital asset issuance.
The Central Bank of Bahrain (CBB) now treats activities like minting, burning, and custody of stablecoins as regulated financial services, requiring licenses for all issuers.
Only fully fiat-backed stablecoins pegged to approved currencies (e.g., USD, BHD) are allowed, and issuers must maintain 1:1 reserves, undergo audits, and meet strict cybersecurity and governance standards.
The CBB’s rules also mandate white papers, prohibit interest payments, and enforce redemption rights and asset segregation. Additional safeguards allow the CBB to reject or penalize risky projects. This move supports Bahrain’s broader crypto ambitions.
Recent milestones include Binance’s BPay Global gaining a license for fiat-crypto services and the launch of the region’s first Bitcoin-linked investment product by the National Bank of Bahrain. With $338.7 billion in regional crypto activity (mostly institutional), Bahrain is positioning itself as a MENA crypto hub.
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