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.
Bahrain's Central Bank of Bahrain (CBB) introduced its Crypto-Asset Module (CRA) in 2019 as part of its regulatory rulebook, making Bahrain one of the first MENA jurisdictions to establish a dedicated crypto licensing framework. The CRA was updated in 2020 and has been further refined since. It requires crypto-asset service providers to obtain a CBB licence under Category 4 (investment business) or a dedicated crypto-asset service provider licence. Bahrain has positioned itself as a regional crypto hub — notable licensees include Rain Financial, the first CBB-licensed crypto exchange. The framework is aligned with FATF standards and covers the full lifecycle of crypto-asset services including exchange, custody, and portfolio management.
Applies to any person carrying on crypto-asset services in or from Bahrain, including: crypto-asset exchanges, crypto-asset portfolio managers, crypto-asset custodians, and crypto-asset margin financing providers. Foreign firms targeting Bahraini clients may also be in scope.
Key requirements: (1) CBB licence required — applicants must meet minimum capital requirements (BHD 100,000–300,000 depending on activity). (2) AML/CFT programme: full KYC, customer due diligence, ongoing monitoring, suspicious activity reporting — aligned with FATF Recommendation 16 (Travel Rule). (3) Segregation of client assets. (4) Technology and cybersecurity risk management. (5) Fit-and-proper requirements for key personnel. (6) Governance framework. (7) Consumer protection: clear disclosures, complaint handling. (8) Cold storage requirements for custody services.
Always refer to official sources to confirm current requirements. CryptoRegHub summaries are for general guidance only.
Large fines, licence revocation, or criminal referral risk
This summary is for general informational purposes only and does not constitute legal advice. Always verify with official sources and consult qualified legal counsel.