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  • SIO-1 Scope of Application

    • SIO-1.1 Undertaking Regulated Activity in Stablecoins

      • SIO-1.1.1

        This Module sets out the requirements for stablecoin issuers undertaking regulated stablecoin offering service. Pursuant to CBB Regulation No (1) of 2007 with respect to regulated services, regulated stablecoin offering service includes the following services:

        (i) issuance and offering of stablecoins;
        (ii) controlling the total supply of stablecoins;
        (iii) minting and burning of stablecoins; and
        (iv) services incidental to issuance and offering of stablecoin such as managing and safeguarding the reserve assets and custody of stablecoins;
        Added: July 2025

      • SIO-1.1.2

        Stablecoin issuers intending to offer regulated stablecoin offering services which were not included in its application for license and/or additional services which are not part of the regulated stablecoin offering services specified in Paragraph SIO-1.1.1, must seek the CBB’s prior written approval before offering the service. Stablecoin issuers must provide the CBB with detailed description of the new services, the resources required and the operational framework for such service.

        Added: July 2025

      • SIO-1.1.3

        No person shall undertake (or hold oneself to undertake) regulated stablecoin offering service (SIO-1.1.1) or actively market the issuance and offering of stablecoins to the public, by way of business, within or from the Kingdom of Bahrain, unless that person is duly licensed by the CBB.

        Added: July 2025

      • SIO-1.1.4

        The regulated activities will be deemed to be undertaken ‘within or from the Kingdom of Bahrain’, if, for example, the person concerned:

        (a) Is incorporated in the Kingdom of Bahrain;
        (b) Uses an address situated in the Kingdom of Bahrain for its correspondence; or
        (c) Solicits clients within the Kingdom of Bahrain.
        Added: July 2025

      • SIO-1.1.5

        For the purposes of SIO-1.1.3, actively market includes:

        (d) Frequently calling on members of the Bahrain public and marketing their service;
        (e) Running a mass media programme targeting Bahrain’s public; and
        (f) Internet activities that targets the Bahrain public.
        (g) This would also include activities provided by Bahrain incorporated firms to persons based in Bahrain or overseas (natural and legal), as well as those provided by overseas firms to Bahrain residents (natural or legal).
        Added: July 2025

      • SIO-1.1.6

        Stablecoin issuers must satisfy the conditions and requirements detailed in this Module for:

        (a) The types of stablecoins that can be issued; and
        (b) The requirements pertaining to stablecoin issuer’s eligibility and obligations.
        Added: July 2025

      • SIO-1.1.7

        To assist with the interpretation of the requirements of this Module and their application, stablecoin issuer and/or their appointed functionaries should initiate discussion with the CBB and seek necessary clarification. Any action or conduct which departs from the requirements stipulated in this Module or other applicable Modules shall be taken into account by the CBB for the purpose of determining compliance with the regulatory framework.

        Added: July 2025

    • SIO-1.2 Type of Stablecoins Permitted for Offering

      • SIO-1.2.1

        Stablecoin issuers are permitted to issue single currency stablecoins backed by reserve assets in one of the following fiat currencies:

        (a) Bahraini Dinar (BHD);
        (b) United States Dollar (USD); and
        (c) Any other fiat currency acceptable to the CBB and in respect of which a prior CBB approval has been obtained
        Added: July 2025

      • SIO-1.2.2

        For the purpose of Paragraph SIO-1.2.1, a stablecoin issuer must ensure that the value of the reserve assets backing the approved stablecoin is at least equal to the par value of the approved stablecoin in circulation at all times.

        Added: July 2025

      • SIO-1.2.3

        With regards to Paragraph SIO-1.2.1(c) above, the CBB while determining the suitability of stablecoins backed in any other fiat currencies (other than Bahraini Dinar and US Dollar), will take into consideration various factors including but not limited to the stabilisation mechanism as well as the availability of high quality and highly liquid with minimal market, credit and concentration risk reserve assets in those currencies.

        Added: July 2025

      • SIO-1.2.4

        In order to distinguish stablecoins approved by the CBB for offering pursuant to the requirement of this Module from other types of stablecoins, the stablecoins approved by the CBB shall be referred to as approved stablecoins.

        Added: July 2025

      • CBB’s Right of Refusal or Restrictions on Stablecoin Offering

        • SIO-1.2.5

          The CBB may reject an application for issuance of a stablecoin if it determines that the issuance thereof might cause damage, dilute or be contrary to the interests of national economy, the holders of the stablecoin or public investors in general. The CBB may also refuse to grant its approval, postpone granting such approval, or impose additional terms and conditions on the issuance of stablecoins, if the CBB deems that the market condition or circumstances justifies such action.

          Added: July 2025