The Central Bank of Bahrain (CBB) has issued a new regulatory decision amending its 2007 regulation on supervised financial services. Under this amendment, a new subcategory has been introduced to specifically regulate companies engaged in the issuance and management of stable crypto-assets (commonly known as stablecoins).
The new subcategory falls under the "Specialized Companies" classification and brings within the scope of CBB supervision any entity involved in issuing or offering stablecoins, managing their supply, minting or burning tokens, safeguarding reserves, or providing custodial services related to stable crypto-assets. It also extends to any other activity associated with this class of digital assets. By formally recognizing and regulating stablecoin issuers, the CBB is reinforcing its commitment to responsible innovation in financial technology. This step aligns with international trends toward regulating asset-backed digital tokens and reflects Bahrain’s strategic positioning as a fintech-friendly jurisdiction.
The decision came into effect the day after its publication in the Official Gazette and is expected to create new licensing and compliance obligations for entities operating in this space. Companies currently issuing stablecoins or engaging in related activities should carefully assess whether they now fall within the scope of CBB supervision.
For legal and compliance teams, this development signals a critical point: while Bahrain continues to encourage digital innovation, it is equally committed to ensuring stability, transparency, and regulatory clarity in its evolving financial sector.
Login
