The National Bank of Bahrain (NBB), in collaboration with ARP Digital, has launched a first-of-its-kind Bitcoin investment product in Bahrain and the GCC. This product offers investors the chance to benefit from Bitcoin's growth with protection against its volatility.

Investment Product by the National Bank of Bahrain

The new structured product, available only to accredited investors, allows profits from Bitcoin's positive performance while safeguarding the initial investment from losses. According to Hisham AlKurdi, Group Chief Executive at NBB, "We are proud to introduce this bespoke structured investment, which blends the appeal of digital asset exposure with the security of capital protection."

Bahrain and UAE Compete for Leadership

Bahrain and the UAE are known as early adopters of cryptocurrencies in the MENA region, leading in crypto-friendliness among GCC countries. The UAE announced the removal of taxes from all cryptocurrency transactions, effective from November 15, 2024. Last month, Bahrain granted Crypto.com a license to provide crypto payment services.

Regulation and Cryptocurrency Development in MENA

In 2019, the Central Bank of Bahrain introduced regulations for cryptocurrency exchanges. In the UAE, the implementation of virtual asset regulations started in 2022, with Dubai Virtual Asset Regulatory Authority as the main entity today. According to Chainalysis, the UAE and Saudi Arabia have high activity in DeFi platforms due to a progressive regulatory environment.

NBB's product launch highlights the active development of the cryptocurrency sector in the MENA region, with countries like Bahrain and UAE competing for innovation leadership in digital asset regulation.