General information only. CryptoRegHub provides summaries for informational purposes and does not constitute legal or compliance advice. Always verify with official sources and consult qualified legal counsel before making compliance decisions.
CryptoRegHub provides plain-English summaries of crypto regulations for informational purposes only. This does not constitute legal, compliance, or financial advice. Regulations change frequently — always verify information with official sources and consult qualified legal counsel before making any compliance decisions.
One of the first crypto licensing regimes in the Middle East, running since February 2019 under the CBB's CRA Module with four ascending categories: advisory (Category 1), agent trading, custody and portfolio management (Category 2), principal trading (Category 3), and operating an exchange (Category 4, which must be a B.S.C. company). The tier table is the cleanest in the region — fixed paid-up capital per category — with a BD 100 application fee per the rulebook itself.
Capital requirements
Tier
Capital
Covers
Category 1
BHD 25,000
Advice and order reception; no client assets
Category 2
BHD 100,000
Plus trading as agent, custody, portfolio management
Category 3
BHD 200,000
Plus trading as principal
Category 4
BHD 300,000
Must be a B.S.C. company; matched-principal restrictions
Operating a crypto-asset exchange (+ custody)
Application process
1
Pick your category
Categories 1–4 ascend from advisory to exchange operation; the category determines paid-up capital and corporate form.
2
Incorporate and staff locally
Bahrain entity with resident CEO, Compliance Officer and MLRO; 100% foreign ownership is permitted.
3
Apply with the BD 100 fee
Per the CBB rulebook — the substantive cost is the capital, insurance and build.
4
Meet the prudential layer
Paid-up capital per category, liquid assets covering three months of operating expenses, and professional indemnity insurance of at least BD 100,000 from a CBB-licensed insurer.
5
Launch within six months
Operations must commence within six months of approval.
Ongoing obligations
Prudential maintenance — category capital, the three-month liquid-asset cover, and PI insurance maintained continuously.
Proprietary dealing cap — proprietary crypto dealings limited to 50% of paid-up capital or net equity, whichever is lower.
Annual fees and reporting — the 0.25% operating-expense fee, CBB reporting and AML/CFT obligations.
Common rejection & delay reasons
Category 4 corporate form
Exchange operators must be B.S.C. companies — restructuring late is expensive.
Resident management gaps
The CEO/CO/MLRO residency expectations are assessed substantively.
What's changing
CRA Module iterations — confirm current fee text (CRA-1.6) at application
· in force
Frequently asked questions
At a glance
JurisdictionBahrain
RegulatorCentral Bank of Bahrain (CBB)
TypeLicence — 4 categories
CapitalBD 25k–300k by category
Application feeBHD 100
Ongoing feesVariable annual licence fee of 0.25% of operating expenses (secondary sources cite a BD 2,000–12,000 band by category — likely floor/cap on the same formula; confirm CRA-1.6.3), payable by 1 December of the preceding year.
Realistic timelineAround 60 days is claimed by one source — optimistic; realistically months, business-model dependent (industry estimates). Operations must commence within six months of approval.
PassportingNone
Last verified28 Jul 2026
Local presence
Bahrain incorporation (W.L.L. or B.S.C.; Category 4 must be B.S.C.), 100% foreign ownership allowed; Bahrain office with resident core management (CEO, Compliance Officer, MLRO); shareholders of 5%+ pass CBB suitability.
This guide is for general informational purposes only and does not constitute legal advice. Figures change — always verify with the regulator and consult qualified counsel before applying.