---
type: free_zone
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "middle_east", "menafatf", "crypto_friendly"]
aliases: ["BH-FIN", "BHR-FIN", "Bahrain FinTech Bay"]
created: 2026-04-13
updated: 2026-04-02
compile_into: ["[[country--bahrain]]"]
sources:
  - name: "CBB"
    url: "https://www.cbb.gov.bh"
    type: "official"
  - name: "CBB Crypto-Asset Module"
    url: "https://www.cbb.gov.bh"
    type: "framework"
---

# 🇧🇭 [[free-zone--bahrain-fintech-bay|Bahrain Fintech Bay]] (BH-FIN) — Crypto Regulation

> 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

| Field | Value |
|-------|-------|
| Status | crypto_friendly |
| Sub-jurisdiction of | [[country--bahrain|Bahrain]] |
| Risk Score | 15/100 (Low Risk) |
| Enforcement Level | Low |
| Region | [[domain--middle-east|middle east]] |
| Currency | [[entity--bhd|BHD]] |

## Tax

| Type | Rate |
|------|------|
| VAT on Crypto | No |

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

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--cbb|CBB]] |
| Framework | CBB Crypto-Asset Module |
| Ease | medium |
| Cost | N/A |
| Timeline | N/A months |

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

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | fsrb_only |

## DeFi

**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

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.06/kWh |
| Renewable Energy | 5% |
| Climate | arid |
| Infrastructure | good |

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

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 58/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |

## Enforcement

No significant enforcement actions reported; jurisdiction actively encourages crypto business

## CBDC Status: unknown

---

*Data source: [Soken Crypto Legal Map](https://soken.io/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [CBB](https://www.cbb.gov.bh)
- [CBB Crypto-Asset Module](https://www.cbb.gov.bh)