SIO-4 Financial Resources Requirement
SIO-4.1 Initial Paid-Up Capital (Base Capital) Requirement
SIO-4.1.1
The minimum initial paid-up share capital (base capital) for grant of stablecoin issuer license is BHD 250,000.
Added: July 2025SIO-4.1.2
Applicants are required to ensure that the minimum initial paid-up share capital is paid into a retail bank licensed to operate in the Kingdom of Bahrain. They must provide, upon request, evidence to the CBB of the deposited amount.
Added: July 2025SIO-4.2 Prudential Requirements
SIO-4.2.1
A stablecoin issuer must at all times, have net shareholders equity equal to higher of the following:
(a) the initial paid-up share capital (base capital) requirement referred to in Paragraph SIO-4.1.1; or(b) an amount equal to 50% of total operating expenses as reported in the preceding year’s annual financial statements subject to the adjustments specified in Paragraph SIO-4.2.3.For the purposes of SIO-4.2.1(b), the total operating expenses for newly licensed stablecoin issuer (less than one year of operation) shall be their projected annual operating expenses.
Added: July 2025Minimum Liquid Fund Requirement
SIO-4.2.2
Stablecoin issuers must maintain an amount equal to 50% of total operating expense as reported in the preceding year’s annual financial statements, subject to the adjustments specified in Paragraph SIO-4.2.3 in liquid assets.
Added: July 2025SIO-4.2.3
The adjustments to be made to the total operating expenses are exclusion of the following items from the total operating expenses:
(a) expense items that are not incurred from the ordinary activities and are not expected to recur frequently or regularly. This may include costs from one-time events such as write-offs, purchases of or losses from the sale of the fixed assets, or extraordinary events such as earthquakes or other natural disasters; and(b) depreciation and amortisation expenses as stated in the financial statementsAdded: July 2025SIO-4.3 Additional Capital Requirement
Additional Capital
SIO-4.3.1
The CBB may require a stablecoin issuer to maintain a higher level of capital where it has assessed, after conducting a thorough assessment, the stablecoin issuer license is unable to achieve an orderly wind-down in case of insolvency and stablecoin holders are expected to be adversely affected as a result. The CBB may also utilize the services of independent assessors to arrive at its decision.
Added: July 2025Other Regulatory Measures
SIO-4.3.2
Where an assessment, based on the criteria stipulated in Paragraph SIO-4.3.3, by the CBB, indicates a significant degree of business risk, the CBB may, at its sole discretion, may impose remedial measures as deemed appropriate to address the risk.
Added: July 2025SIO-4.3.3
For the purposes of SIO-4.3.2, the CBB shall apply the following criteria:
(a) whether the stablecoin issuer is likely to breach the requirements referred to in Chapter 6 of this Module (Reserve assets and Redemption Requirement) and Section SIO-5.3 (Governance Requirements) of Chapter 5 within the following 12 months;(b) whether at all times redemption at par value is not ensured either in normal or in stressed market condition;(c) whether there is an increased risk of a significant deterioration on the value of the reserve assets or the financial condition of the stablecoin issuer; and(d) whether there is an increased risk arising from systems including the underlying distributed ledger and any trading platform or payment system used for the issuance or the transfer of the approved stablecoin and from other third-party crypto asset service providers such as custodians to which the approved stablecoin and/or reserve asset might rely on.Added: July 2025
