Bahrain maintains a crypto-friendly regulatory environment with clear oversight by the Central Bank of Bahrain (CBB) under the CBB Crypto-Asset Module. The CBB acts as the integrated financial regulator, supporting fintech innovation including crypto assets.
| Status | crypto_friendly |
| Risk Score | 15/100 (Low Risk) |
| Region | middle east |
| Currency | BHD |
| Capital Gains (Personal) | none |
| Capital Gains (Corporate) | none |
| VAT on Crypto | No |
The regulator page does not specify detailed tax treatment for cryptocurrencies, indicating no VAT on crypto transactions.
| Required | Yes |
| Regulator | CBB |
| Framework | CBB Rulebook Volume 6 Crypto-Asset (CRA) Module + Stablecoin Issuance and Offering (SIO) Module (July 2025) |
| Ease | medium |
Licensing is regulated under the CBB Crypto-Asset Module with specific requirements for crypto asset service providers.
No significant enforcement actions reported; jurisdiction actively encourages crypto business
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | fsrb_only |
| FATF Body | MENAFATF |
| Suspicious-Activity Reporting | Yes |
Status: regulated
DeFi activities fall under the regulatory scope of the CBB Crypto-Asset Module, requiring compliance with AML and licensing rules.
Status: regulated
Stablecoins are regulated under a dedicated SIO Module within CBB Rulebook Volume 6. Stablecoin issuers must be locally incorporated as Bahraini Joint Stock Companies (BSC) and obtain a specific SIO license from the CBB. Permitted pegs: BHD, USD, and other CBB-approved fiat currencies. Reserve requirements apply.
Status: no_rules
No specific NFT regulation; generally permitted
| Legal | Yes |
| Electricity Cost | $0.06/kWh |
| Renewable Energy | 5% |
| Infrastructure | good |
Mining is legal with moderate electricity costs and limited renewable energy. Infrastructure supports mining operations adequately.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 58/100 |
| Banking Access | open |
Risk Factors
Bahrain offers a stable political environment with open banking access and free internet. Regional tensions exist but do not significantly impact crypto business.
Bahrain maintains a crypto-friendly regulatory environment with clear oversight by the Central Bank of Bahrain (CBB) under the CBB Crypto-Asset Module. The CBB acts as the integrated financial regulator, supporting fintech innovation including crypto assets.
Bahrain Fintech Bay is classified by FATF as: fsrb_only.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses. Travel rule threshold: no minimum - all transfers.
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Explore IT Services →Last reviewed: 2026-06-01 · Data source: Soken Crypto Legal Map
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