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Bahrain: crypto & digital assets regulation

Regulated

Bahrain's CBB-led comprehensive licensing and regulatory framework for crypto-assets

Lead regulator:
Central Bank of Bahrain
Key law:
Crypto-Asset Module
Last updated:
2026-07-12

The Central Bank of Bahrain (CBB) has established a comprehensive regulatory framework for crypto-assets and digital token offerings, primarily under its Crypto-Asset Module.

This framework mandates a detailed licensing regime for various crypto-asset services, requiring licensees to adhere to strict capital, custody, and cybersecurity standards.

Furthermore, the CBB's Financial Crime Module imposes stringent Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) requirements, including the deployment of technology for monitoring crypto-asset transfers to verify origin, destination, and legitimacy, particularly for cross-border movements.

The regulator continues to strengthen its oversight, with recent proposals and amendments focusing on enhancing cybersecurity requirements and operational risk management for all affected entities, including crypto-asset licensees.

Who regulates

  • Central Bank of Bahrain (CBB)

    Primary regulator for crypto-asset services and digital token offerings, overseeing financial crime and cybersecurity standards for licensees.

    [1][2][3][4]

Core laws & rules

  • Crypto-Asset Module (2022)

    Establishes a detailed licensing framework for crypto-asset services and digital token offerings, mandating capital, custody, and cybersecurity standards.

    [1]

  • Financial Crime Module (2022)

    Requires investment firm licensees to implement technology for monitoring crypto-asset transfers, ensuring verification of origin, destination, and legitimacy.

    [2]

Licensing & registration

  • Crypto-asset services and digital token offerings

    A detailed licensing framework is established, categorizing services and mandating strict capital, custody, and cybersecurity standards for licensees.

    [1]

Restrictions & warnings

  • Licensed entities must adhere to strict capital, custody, and cybersecurity standards. Investment firm licensees are required to deploy technology for transaction monitoring of crypto-asset transfers, verifying origin, destination, and legitimacy, and providing complete originator and beneficiary information for cross-border movements.

    [1][2]

Direction of travel

  • The CBB is continuously strengthening its regulatory framework, with recent proposals focusing on enhancing cybersecurity requirements, including mandating cyber hygiene practices and subscription to specific services for crypto-asset licensees.

    [3][4]

Sources

  1. Amendments to the Crypto-Asset Module · 2022-09-08
  2. Central Bank of Bahrain Amendments to Financial Crime Module on Crypto-asset Transfers · 2022-09-08
  3. Amendments to Crypto-asset Module (Module CRA) · 2023-08-23
  4. Proposed Amendments to Cyber Security Requirements · 2024-01-28

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This guide is compiled automatically from 4 primary-source documents published by Bahrain's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.