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  • SIO-8.2 Restriction on Issuance and Significant Stablecoin Arrangement

    • Restriction on Issuance

      • SIO-8.2.1

        The CBB may, in its sole and absolute discretion, place limit on further issuance of an approved stablecoin where it determines that the approved stablecoin is being widely used a means of exchange within Bahrain. The aforementioned restriction on further issuance does not apply to approved stablecoins backed by Bahraini Dinar (BHD) or US Dollar (USD).

        Added: July 2025

    • Significant Stablecoin Arrangement

      • SIO-8.2.2

        The CBB may classify an approved stablecoin as significant stablecoin where the CBB determines that any disruption to the approved stablecoin arrangement could lead to further disruption to its users, cause systemic disruption to the financial system of Bahrain or affect public confidence in the financial system of Bahrain. The CBB will consider all factors relevant to the stablecoin issuer, including but not limited to:

        (a) the number and type of clients holding the approved stablecoins;
        (b) the number, value and type of transactions processed;
        (c) value of the approved stablecoin in circulation;
        (d) value of the reserve assets maintained by the stablecoin issuer;
        (e) markets served and market share of the approved stablecoin;
        (f) the interconnectedness and interdependencies of the approved stablecoin or the stablecoin issuer with other financial institutions; and
        (g) the business, structural and operational complexity of the stablecoin issuer.
        Added: July 2025

    • Additional Obligations for Licensees whose Stablecoins have been Classified as Significant Stablecoins

      • SIO-8.2.3

        Where an approved stablecoin is classified as significant stablecoin, the stablecoin issuer issuing such significant stablecoin must:

        (a) adopt, implement and maintain a remuneration policy that promotes the sound and effective risk management and that does not create incentives to relax risk standards;
        (b) assess and monitor the liquidity needs to meet the redemption request. For this purpose, the licensee must establish, maintain and implement a liquidity management policy and procedures. The policy and those procedures must ensure that the reserve assets have a resilient liquidity profile that enables the licensee to continue operating normally, including under scenarios of liquidity stress;
        (c) conduct, on a regular basis, liquidity stress testing. Depending on the outcome of such tests, the licensee may decide to strengthen the liquidity requirements.
        Added: July 2025

      • SIO-8.2.4

        Where several stablecoin issuers have issued significant stablecoins backed by same fiat currency, provisions of Paragraph SIO-8.2.3 shall apply to each licensee.

        Added: July 2025

      • SIO-8.2.5

        The CBB may, in its absolute discretion, impose additional requirements on stablecoin issuer whose approved stablecoin has been classified as significant stablecoin.

        Added: July 2025