Bahrain has a clear regulatory framework for cryptocurrencies under the Central Bank of Bahrain (CBB), with the CBB Rulebook Volume 6 — CRA Module governing crypto assets. The regulatory environment is well-established and supportive of crypto activities.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | middle east |
| Currency | BHD |
| Adoption Rank | #35 |
| Capital Gains (Personal) | 0% (no personal income or capital gains tax) |
| Capital Gains (Corporate) | 0% (no corporate tax) |
| VAT on Crypto | No |
| Required | Yes |
| Regulator | CBB |
| Framework | CBB Rulebook Volume 6 — CRA Module |
| Ease | medium |
| Cost (USD) | $15,000 - $125,000 |
Licensing is regulated by the Central Bank of Bahrain under Volume 6 of the CBB Rulebook, requiring compliance with capital and operational requirements.
The CBB has issued warnings about unlicensed crypto platforms but enforcement actions have been limited. The focus has been on licensing and market development rather than punitive enforcement.
| Status | Research |
| Name | Digital Dinar |
| Issuing Authority | Central Bank of Bahrain (CBB) |
| Model | retail |
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | fsrb_only |
| FATF Body | MENAFATF |
| Suspicious-Activity Reporting | Yes |
Status: regulated
DeFi activities are regulated under the CBB framework, requiring compliance with AML and licensing rules.
Status: regulated
Stablecoins are regulated under the CBB framework with specific requirements for issuance and operation.
Status: no_rules
No NFT-specific regulation. The CBB crypto-asset module does not specifically address NFTs. NFTs with investment characteristics could potentially fall under existing securities regulation.
| Legal | Yes |
| Electricity Cost | $0.029/kWh |
| Renewable Energy | 1% |
| Infrastructure | good |
Bahrain has low electricity costs favorable for mining, but very limited renewable energy share. Infrastructure is good with reliable internet and data centers.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 45/100 |
| Banking Access | moderate |
| Sanctions Program Active | No |
Risk Factors
Bahrain is politically stable with moderate corruption and relatively easy business environment. It is not under international sanctions but faces regional geopolitical tensions and some capital controls.
Bahrain has a clear regulatory framework for cryptocurrencies under the Central Bank of Bahrain (CBB), with the CBB Rulebook Volume 6 — CRA Module governing crypto assets. The regulatory environment is well-established and supportive of crypto activities.
Bahrain is classified by FATF as: fsrb_only.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
Soken combines Web3 security engineering and crypto-legal counsel — two specialised tracks, one team. Pick the side that matches your need.
VASP licensing, jurisdiction analysis, AML/KYC, legal opinions, company registration and banking access.
Explore Legal Services → IT & SecuritySmart-contract audits, penetration testing, Web3 development, AI/LLM security audits.
Explore IT Services →Last reviewed: 2026-09-03 · Data source: Soken Crypto Legal Map
← Back to Crypto Map