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Bahrain Introduces First-Ever Stablecoin Regulatory Framework to Boost Crypto Transparency
The Central Bank of Bahrain (CBB) has released its new Stablecoin Issuance and Offering (SIO) Module, marking a significant milestone in the country’s approach to digital assets. The framework sets out clear rules for the compliant issuance of stablecoins, ensuring transparency and stability within the cryptocurrency market.
Under the newly introduced framework, all stablecoins must be fully backed by fiat currencies such as the Bahraini Dinar or the US Dollar. Issuers are required to hold a 1:1 reserve ratio using high-quality, liquid assets, which must be kept in segregated accounts and undergo independent audits. This approach aims to limit risks to Bahrain’s financial system while enabling trusted digital asset products.
The CBB has also emphasized the importance of operational transparency, mandating that stablecoin projects publish whitepapers and disclose their financial information. Cybersecurity readiness, risk controls, and annual audits are further mandatory requirements, ensuring the highest level of compliance for all participants.
To qualify for a license to issue stablecoins, entities must demonstrate a minimum paid-up capital of BHD 250,000 and provide detailed governance plans, including financial forecasts, IT systems architecture, shareholder disclosures, and internal controls. The CBB retains the right to impose higher capital buffers if risks are identified or reject any applications that could harm Bahrain’s economy or public.
Industry experts have welcomed the move, highlighting its potential to attract credible players and bring stability to the digital finance ecosystem. A Dubai-based digital asset consultant has praised the framework for offering the necessary structure to unlock sustainable growth in the sector.
Source: blockonomi.com
