Bahrain

Regulated Partly Confirmed

Bahrain has a dedicated Central Bank licensing regime for crypto-asset services and separate rules for qualifying digital-token offerings and stablecoin issuance.

Central Bank of Bahrain

Total Laws (incl. applicable EU-wide)

Effective Laws

At a Glance

Is holding crypto allowed?

Allowed

Is crypto trading allowed?

Regulated

Is P2P trading allowed?

Allowed

Are crypto payments allowed?

Allowed

Is crypto legal tender?

Is mining allowed?

Allowed

Is staking allowed?

Regulated

Is DeFi participation allowed?

Regulated

Are stablecoins allowed or regulated?

Regulated

Activity Status Matrix

Activity	Status	Details
Holding Crypto	Allowed	Is holding crypto allowed?
Crypto Trading	Regulated	Is crypto trading allowed?
P2P Trading	Allowed	Is P2P trading allowed?
Crypto Payments	Allowed	Are crypto payments allowed?
Legal Tender	No	Is crypto legal tender?
Mining	Allowed	Is mining allowed?
Staking	Regulated	Is staking allowed?
DeFi	Regulated	Is DeFi participation allowed?
Stablecoins	Regulated	Are stablecoins allowed or regulated?
NFTs	Regulated	Are NFTs allowed or regulated?
Token Launches	Regulated	Are token launches allowed?
Crypto Advertising	Regulated	Is crypto advertising allowed?
Banking Access	Regulated	Do crypto businesses have banking access?

Regulation Overview

The Central Bank of Bahrain regulates crypto-asset services under Volume 6 of its Rulebook. Licensed activities include operating a platform, dealing, arranging, portfolio management, advice and custody, with licence categories tied to permitted business. The framework addresses governance, capital, client assets, cyber risk, market conduct and AML/CFT. Digital tokens with security characteristics and regulated stablecoin issuance fall within additional CBB rules. Crypto is not Bahraini legal tender.

Tax Information

Bahrain has no general personal income tax. Business tax, VAT, zakat-equivalent obligations for relevant entities and the domestic minimum top-up tax for in-scope multinational groups require separate analysis.

Individual Tax Treatment

Private investment gains are not generally subject to personal income tax, but residency, business activity and cross-border obligations can change the result.

Business Tax Treatment

Licensed businesses must assess VAT, sector-specific taxes, employment charges and the domestic minimum top-up tax where applicable; regulatory fees and accounting obligations also apply.

National Bureau for Revenue

Business & Licensing

Providing regulated crypto-asset services within or from Bahrain requires the appropriate CBB licence. The permitted activity and prudential requirements depend on the licence category.

AML / KYC Requirements

CBB licensees must operate risk-based AML/CFT programmes, customer and beneficial-owner due diligence, transaction monitoring, sanctions controls, recordkeeping and suspicious-reporting procedures.