What is Bahrain Fintech Bay's FATF status?

Bahrain Fintech Bay is classified by FATF as: fsrb_only.

Are VASPs licensed in Bahrain Fintech Bay?

Yes — licensing is required for VASPs.

What is the AML/KYC regime in Bahrain Fintech Bay?

KYC is mandatory for crypto businesses.

Bahrain Fintech Bay — Crypto Regulation 2026

Bahrain maintains a crypto-friendly regulatory environment with clear oversight by the Central Bank of Bahrain (CBB) under the CBB Crypto-Asset Module. The CBB acts as the integrated financial regulator, supporting fintech innovation including crypto assets.

Overview

Status	crypto_friendly
Risk Score	15/100 (Low Risk)
Region	middle east
Currency	BHD

Tax Information

VAT on Crypto

The regulator page does not specify detailed tax treatment for cryptocurrencies, indicating no VAT on crypto transactions.

Licensing & Registration

Required	Yes
Regulator	CBB
Framework	CBB Crypto-Asset Module
Ease	medium

Licensing is regulated under the CBB Crypto-Asset Module with specific requirements for crypto asset service providers.

Enforcement Activity

Level: Low

No significant enforcement actions reported; jurisdiction actively encourages crypto business

AML / KYC

KYC Required	Yes
Travel Rule	Yes
FATF Member	No
FATF Status	fsrb_only
FATF Body	MENAFATF
Suspicious-Activity Reporting	Yes

DeFi, Stablecoins & NFTs

Status: regulated

DeFi activities fall under the regulatory scope of the CBB Crypto-Asset Module, requiring compliance with AML and licensing rules.

Stablecoins

Status: regulated

Stablecoins are regulated under the CBB Crypto-Asset Module with specific compliance and licensing requirements.

NFTs

Status: no_rules

No specific NFT regulation; generally permitted

Mining

Legal	Yes
Electricity Cost	$0.06/kWh
Renewable Energy	5%
Infrastructure	good

Mining is legal with moderate electricity costs and limited renewable energy. Infrastructure supports mining operations adequately.

Geopolitical Risk

Stability	stable
Sanctions	No
Corruption Index	58/100
Banking Access	open

Risk Factors

regional geopolitical tensions

Bahrain offers a stable political environment with open banking access and free internet. Regional tensions exist but do not significantly impact crypto business.