Is crypto legal in Bahrain? Regulation & rules (2026)

The CBB issued an in-principle license approval to AX Coin (Solowin/AlloyX) to issue a fiat-backed stablecoin, the first applicant to advance under the 2025 Stablecoin Issuance and Offering framework, subject to final approval.

Bahrain became the first GCC state to adopt a dedicated framework licensing issuers of fiat-backed (BHD, USD or other approved currency) stablecoins, requiring a 1:1 reserve ratio and rules on minting, redemption and reserve management.

Fasset received a Crypto-Asset Service Provider Category 3 license to offer crypto trading services, the fifth such license since the first Category 3 license was issued in 2020, illustrating the maturing licensing pipeline under the CRA Module.

The CBB licensed a digital-asset trading platform co-founded by a former Goldman Sachs partner, signaling continued institutional interest in Bahrain's crypto regime under the CRA Module.

Following industry consultation, the CBB expanded the crypto-asset framework to cover digital token offerings, treating security-like tokens as securities and adding definitions (asset/utility tokens, whitepaper rules) and stronger cybersecurity requirements.

After graduating from the CBB regulatory sandbox, Rain obtained a Crypto-Asset Module license, becoming the first fully licensed and regulated cryptocurrency exchange in the region.

The CBB published final rules establishing Bahrain's licensing and supervisory regime for crypto-asset services and exchanges within Volume 6 of its Rulebook, covering licensing, capital, AML/CFT, custody, conduct and cybersecurity.

The CBB introduced a regulatory sandbox allowing firms (including crypto and blockchain startups) to test products under supervision, the foundational step that enabled Bahrain's later crypto licensing regime.