The Central Bank of Bahrain Stablecoin Issuance and Offering (SIO) Module is an in-force regulatory module in CBB Rulebook Volume 6 that creates a licensing and supervision regime for stablecoin issuers operating in or from Bahrain. The CBB issued the module in July 2025 and announced the framework on July 4, 2025. The module states that its contents are effective from release unless another date is specified, and the CBB\u2019s July 2, 2025 circular described the module as effective immediately.<\/p>\n
Module SIO is directed at entities undertaking \u201cregulated stablecoin offering service,\u201d including issuance and offering, supply control, minting and burning, reserve management, reserve safeguarding and custody-related services. It should be read alongside other CBB Rulebook parts, including AML\/CFT, fit and proper, and high-level controls requirements.<\/p>\n
The module prohibits a person from undertaking or holding itself out as undertaking regulated stablecoin offering service, or actively marketing stablecoin issuance to the public by way of business within or from Bahrain, unless licensed by the CBB. The perimeter can capture Bahrain-incorporated firms, entities using a Bahrain address, and solicitation of clients in Bahrain.<\/p>\n
Stablecoin issuers may issue single-currency stablecoins backed by reserve assets denominated in Bahraini dinar, U.S. dollars, or another fiat currency accepted by the CBB and approved in advance. The module refers to stablecoins approved under the regime as \u201capproved stablecoins.\u201d Reserve assets must equal at least the par value of outstanding approved stablecoins.<\/p>\n
Applicants must meet licensing conditions covering legal form, management, systems and controls, auditors, records, and conduct. The base capital requirement for a stablecoin issuer license is BHD 250,000. An issuer must maintain net shareholders\u2019 equity equal to the higher of that base capital amount or 50% of total operating expenses from the preceding annual financial statements, subject to module adjustments.<\/p>\n
The module is structured around a full-reserve model. Stablecoin issuers must hold reserve assets equivalent to at least 100% of the par value of approved stablecoins in circulation, including tokens held by the licensee. Reserve assets must generally be denominated in the same reference fiat currency, sufficient, stable in value and liquid enough to meet redemption rights. Monthly independent audit reports must confirm backing, circulation and reserve composition and be submitted to the CBB and published by the end of the following month.<\/p>\n
Holders of approved stablecoins must have a direct legal right to redeem at par in the pegged fiat currency. Legitimate redemption requests must generally be completed within five business days, with a special timing rule for major disruptions affecting reserve-asset trading or settlement. Redemption fees must be reasonable and clearly communicated, and issuers must disclose redemption procedures in the whitepaper and on their websites.<\/p>\n
Whitepapers must follow the CBB\u2019s Appendix C template and include information about the issuer, stablecoin, offering or trading admission, rights and obligations, technology, risks and reserve assets. Approved whitepapers must be public from the start of the public offer and remain available while approved stablecoins are held by the public.<\/p>\n
Module SIO embeds financial crime and technology controls into the issuer regime. AML\/CFT systems must include customer due diligence for offering and redemption, transaction monitoring, crypto-asset transfer and wire-transfer controls, and redemption CDD. The technology-governance chapter covers system architecture, security, business continuity, wallet controls, private-key management, origin-and-destination controls and cyber-risk policies.<\/p>\n
Custody standards apply where an issuer safeguards, stores or maintains custody of approved stablecoins for clients. If a third-party custodian is used, the issuer must assess the custodian, retain ultimate responsibility for safe custody and ensure client assets are segregated. If clients are required to self-custody, the CBB treats that arrangement as a material risk requiring clear upfront disclosure.<\/p>\n
As of July 10, 2026, this profile treats Module SIO as in force because the CBB letter dated July 2, 2025 states that the module was effective immediately, the Rulebook states the module is effective from release unless otherwise specified, and the CBB\u2019s public announcement followed on July 4, 2025. The profile summarizes the official framework for reference purposes and does not provide legal advice.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bahrain\u2019s CBB Rulebook Module SIO establishes an in-force framework for licensing and supervising approved fiat-backed stablecoin issuers.<\/p>\n","protected":false},"author":1652,"featured_media":547904,"template":"","meta":[],"crypto_law_jurisdiction":[83162],"crypto_law_topic":[81611,81866,81869,81508,81583],"crypto_law_status":[81585],"crypto_law_type":[81546],"crypto_law_actor":[83163],"crypto_law_asset_class":[81572],"acf":[],"yoast_head":"\n