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CBB Crypto-Asset Module

Bahrain

2019

AML/CFT

Overview

The Crypto-Asset Module is part of Bahrain's Financial Institutions Rulebook (Volume 6) issued by the Central Bank of Bahrain (CBB) in 2019. It provides a comprehensive regulatory framework for licensing, supervising, and operating crypto-asset services. This includes requirements for crypto firms, trading platforms, custodians, token issuers, and other crypto-asset service providers.

The regulation applies to crypto exchanges, wallet providers, token issuers, fintech platforms, and other digital asset businesses operating in or targeting Bahrain. It mandates licensing, risk controls, AML/CFT compliance, client asset segregation, and consumer protection standards.

Key Obligations

Obtain a license from the Central Bank of Bahrain before offering crypto-asset services
Maintain capital adequacy and governance frameworks based on business model
Segregate client assets and maintain proper custody arrangements
Implement AML/CFT programs in line with FATF standards

Conduct ongoing risk assessments for operational and cyber risks
Disclose relevant terms, risks, and fee structures to clients
Submit to regulatory audits and supervisory reporting requirements

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FAQ

What types of companies fall under the CBB Crypto-Asset Module?

Crypto exchanges, wallet providers, token issuers, and any service providers engaged in crypto-asset activities in Bahrain.

Is a license required to operate in Bahrain?

Yes. All crypto-asset service providers must obtain a license from the Central Bank of Bahrain.

Does this regulation include AML requirements?

Yes. Licensed entities must implement AML/CFT measures aligned with FATF Recommendations.

Are there rules for safeguarding client funds?

Yes. The module requires clear custody rules and mandates segregation of client assets.