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- The Central Bank of Bahrain Sets Licensing and Supervisory Conditions for Stablecoin Issuers
- The Licensing Framework Aims to Ensure the Safe and Regulated Use of Cryptocurrencies in the Kingdom
The Central Bank of Bahrain (CBB) has issued a new regulatory framework outlining the licensing and supervisory requirements for stablecoin issuers, with the goal of ensuring their safe and regulated use within the Kingdom’s financial system.
Details of the Licensing Framework
Under this framework, licensed entities are permitted to issue stablecoins backed by a single specified currency, such as the Bahraini Dinar, the US Dollar, or any other currency approved by the CBB.
This regulation aims to mitigate the risks associated with unregulated stable crypto-assets, strengthen trust in the financial sector, and provide a safe and stable investment environment that supports the growth of the crypto-asset market.
Mohamed Al-Sadiq, Executive Director of Market Development at the CBB, said this step reflects the Bank’s commitment to encouraging innovation in financial services and reinforcing Bahrain’s position as an advanced financial center in the Middle East and North Africa region.
He added that the new framework enhances the CBB’s role in regulating the crypto-asset market and ensuring the sector is prepared to meet future developments.
For his part, Ali Haroon Al Amer, Director of the Financial Markets Supervision Directorate at the CBB, explained that the initiative underscores the Bank’s keenness to subject crypto-asset-related activities to a comprehensive regulatory and supervisory framework, provide effective investor protection, and ensure a safe and transparent investment environment.
The guidelines were announced during the “Financial Services Horizons: Accelerating Efforts in Digital Transformation” forum, organized in cooperation with the Bahrain Economic Development Board.
Participants discussed the Kingdom’s progress in developing digital banking services, upgrading payment infrastructure, and enhancing human capital to support digital transformation.
