Bahrain licenses crypto-asset services in four categories, and its central bank rules do not mention crypto ATMs
The Central Bank of Bahrain requires a licence for crypto-asset services in or from the Kingdom, in four categories with minimum capital from BHD 25,000 to BHD 300,000. The module was last amended in May 2026. It does not mention ATMs or cash, and the CBB reported eight licensed providers in January 2025.
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4
Licence categories, with minimum capital from BHD 25,000 to BHD 300,000
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8
Licensed crypto-asset providers reported by the CBB in January 2025
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Mentions of ATMs in the CBB crypto-asset module reviewed
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The Central Bank of Bahrain (CBB) requires a licence for crypto-asset services in or from the Kingdom, in four categories with minimum capital from BHD 25,000 to BHD 300,000.1,2 The module was last amended in May 2026.1 It does not mention ATMs or cash, and the CBB reported eight licensed providers in January 2025.1,3
Last updated: October 2026
Regulatory Framework
Crypto-asset services are regulated by the Crypto-Asset Module (CRA) in Volume 6 of the CBB Rulebook. Paragraph CRA-1.1.1 says no person may market or undertake regulated crypto-asset services by way of business within or from Bahrain without a CBB licence.2 An activity counts as in or from Bahrain if, for example, the person is incorporated in Bahrain, uses a Bahraini correspondence address or directly solicits clients in Bahrain (CRA-1.1.5).2 The module history lists a full-module amendment dated May 2026, described as an alignment with the new Fit and Proper Module, and an addition on stablecoin reporting dated July 2025.1
Paragraph CRA-1.1.6 lists the regulated services. They include receiving and transmitting orders, trading as agent or principal, portfolio management, custody, investment advice and operating a crypto-asset exchange. The exchange definition covers trading or conversion of crypto-assets for fiat currency or for other crypto-assets.2
Licence Categories
| Category | Permitted services | Minimum capital |
|---|---|---|
| Category 1 | Order reception and transmission, investment advice. No client assets or money (CRA-1.1.10) | BHD 25,000 |
| Category 2 | Agent trading, portfolio management, custody, advice. No dealing as principal (CRA-1.1.12) | BHD 100,000 |
| Category 3 | Agent and principal trading, portfolio management, custody, advice. No exchange (CRA-1.1.14) | BHD 200,000 |
| Category 4 | Operating a licensed exchange, custody. No client orders against own capital (CRA-1.1.16) | BHD 300,000 |
Minimum capital must be paid into a retail bank licensed in Bahrain (CRA-3.1.1 and 3.1.2).1 Licensees must carry financial crime systems and controls that meet the CBB AML module (CRA-2.6.3), and use technology to detect high-risk situations and tainted wallet addresses (CRA-4.1.4 and 4.1.5).1 Licensees must register and verify the bank and other accounts used to receive or transfer fiat funds, and must not deposit or withdraw fiat through any account other than the client's own registered accounts (CRA-4.4.5 and 4.4.6).1
A law firm briefing from 2019 describes the licensee as a Bahraini joint stock company or a Bahrain branch of an overseas company. That description predates the current module and should be checked against it.5
Licensed Providers
The CBB announced on 23 January 2025 that it had granted a Category 3 licence to Fasset Financial Services, the fifth licence of that tier since 2020. It said eight crypto-asset service providers were licensed across all categories.3 The CBB page does not mention ATMs.3 The CBB licensing directory could not be checked, so the number of holders on 8 October 2026 is not confirmed.
Carrying out regulated financial services without a CBB licence is prohibited under Article 40 of the CBB Law. The CBB lists unauthorised crypto and digital asset investment schemes among the typologies of unlicensed activity.4
Crypto ATMs
The module text reviewed does not mention ATMs, kiosks, cash or physical machines. The only related provisions concern bank and other accounts for fiat funds.1 The text reviewed ended before some later chapters, so the full module should be searched.
In 2019 a trade publication reported one live crypto ATM in Bahrain, at Bahrain Fintech Bay, operated by a company testing in the CBB regulatory sandbox.6 It does not show that a machine can be licensed today.
What Is Not Known
The sources reviewed do not say whether a machine operator needs a Category 4 licence, another category or a separate approval, or whether the CBB has received an application for machines. The list of crypto-assets that licensees may offer was not reviewed. The CBB licensing directory, the fees and the processing time under the current module, and the treatment of cash limits were not confirmed. These are questions for Bahraini counsel and the CBB.
Sources and references
1. Central Bank of Bahrain Rulebook, Volume 6, Crypto-Asset Module, amended May 2026 (PRIMARY, accessed 8 October 2026) | cbben.thomsonreuters.com
2. Central Bank of Bahrain Rulebook, CRA-1.1 License for crypto-asset service (PRIMARY, accessed 8 October 2026) | cbben.thomsonreuters.com
3. Central Bank of Bahrain, grants Crypto Service license to Fasset Financial Services, 23 January 2025 (PRIMARY, accessed 8 October 2026) | cbb.gov.bh
4. Central Bank of Bahrain, Unlicensed Financial Services (PRIMARY, accessed 8 October 2026) | cbb.gov.bh
5. Al Tamimi & Company, Central Bank of Bahrain issues regulations governing crypto-asset services, 2019 (SECONDARY, outdated, accessed 8 October 2026) | tamimi.com
6. Unlock Blockchain, One Bitcoin ATM in entire GCC, 25 June 2019 (SECONDARY, historical, accessed 8 October 2026) | unlock-bc.com
Legal Disclaimer: This article by GENERAL BYTES is for informational purposes only and does not constitute formal legal, financial, or investment advice. Rules may change; always consult specialised local legal counsel and confirm the current position with the Central Bank of Bahrain before considering market entry.