The Central Bank of Bahrain (CBB) has announced the full stablecoin regulation effective July 2, 2025. The document outlines requirements for issuers, licensing conditions, and rules for issuing stablecoins.
Introduction of New Stablecoin Rules
Following consultations with the industry, the Central Bank of Bahrain has published a new module and its appendices under the CBB Rulebook (Volume 6). The module will be effective immediately.
Issuance of Yield-Bearing Stablecoins
The Central Bank of Bahrain is permitting stablecoin issuers to issue yield-bearing stablecoins that pay passive returns to their clients from the investment of reserve assets. Issuers must set reasonable yield rates that do not undermine stablecoin stability.
Stringent Requirements for Stablecoin Issuers
Issuers wishing to offer stablecoins need to meet specific requirements set by the CBB, including managing reserve assets and controlling stablecoin supply. The CBB can reject applications deemed harmful to the economy.
The new rules set by the Central Bank of Bahrain significantly exceed the stablecoin regulations established by the UAE Central Bank, allowing for a broader range of stablecoin options and yield-bearing features.
