Bahrain Central Bank Releases Licensing and Regulatory Framework for Stablecoin Issuers

PANews reported on July 4 that according to the Bahrain News Agency, the Central Bank of Bahrain announced on July 4 the launch of a licensing and regulatory framework for stablecoin issuers, aimed at ensuring the safe integration of stablecoins into the financial system. The new regulations allow licensed institutions to issue single-currency stablecoins backed by the Bahraini dinar, the U.S. dollar or other approved fiat currencies. The move aims to reduce the risks of unregulated stablecoins, enhance investor confidence and promote sustainable growth in the industry.

The central bank's executive director for market development said the move would consolidate Bahrain's position as a financial center in the Middle East. The head of the Capital Markets Supervisory Authority stressed that the new framework reflects the determination to comprehensively regulate crypto assets, including strengthening investor protection measures and market transparency. The policy was released at a fintech event co-organized by the Bahrain Economic Development Board.