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.
Who does it apply to?
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
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.
Obligation types
Licensing / Authorisation
Requirement to obtain a licence or authorisation before operating
KYC / AML
Know Your Customer and Anti-Money Laundering obligations
Capital requirements
Minimum capital or reserve requirements
Custody / Segregation
Rules on how customer assets must be held
Travel Rule compliance
Sharing originator/beneficiary data on transfers
Consumer protection
Rules protecting retail customers
Regulatory reporting
Ongoing reporting to regulators
Penalties & fines
CBB enforcement
Operating without a CBB licence or breaching CRA requirements
Max: Fines, licence revocation, criminal referral
Applies to: All crypto-asset service providers
Implementation timeline
Feb 2019DEADLINE
CBB Crypto-Asset Module (CRA) published and entered into force
One of the first dedicated crypto regulatory frameworks in the MENA region.
Jun 2019
Rain Financial — first CBB-licensed crypto exchange
Rain became the first exchange to receive a CBB crypto licence, establishing Bahrain as a regional hub.
Jan 2020
CRA updated — enhanced AML/CFT and consumer protection requirements
Always refer to official sources to confirm current requirements. CryptoRegHub summaries are for general guidance only.
Updates & news
22 July 2026
Crypto-asset module stable; stablecoin and payments rulebooks moving separately
No material change identified to the CBB Crypto-Asset (CRA) Module itself, which has been in force since February 2019 and amended periodically. Related frameworks have moved: the CBB Stablecoin Issuance and Offering Module is in force following the CBB's July 2025 rulebook letter, setting reserve, custody, AML/CFT and technology-governance requirements for approved stablecoins, and in May 2026 the CBB amended Rulebook Volumes 3 and 4, updating authorisation requirements for payment service providers and ancillary service licensees.
22 July 2026
Crypto-asset module stable; stablecoin and payments rulebooks moving separately
No material change identified to the CBB Crypto-Asset (CRA) Module itself, which has been in force since February 2019 and amended periodically. Related frameworks have moved: the CBB Stablecoin Issuance and Offering Module is in force following the CBB's July 2025 rulebook letter, setting reserve, custody, AML/CFT and technology-governance requirements for approved stablecoins, and in May 2026 the CBB amended Rulebook Volumes 3 and 4, updating authorisation requirements for payment service providers and ancillary service licensees.
Frequently asked questions
At a glance
JurisdictionBahrain
RegulatorCBB
Official nameCBB Rulebook Volume 6 — Crypto-Asset Module (CRA)
StatusIn Force
Enacted1 Feb 2019
Effective from1 Feb 2019
Last verified22 Jul 2026
Penalty severity
● High risk
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.