• CRA-2 CRA-2 Licensing Condition

    • CRA-2.1 CRA-2.1 Condition 1: Legal Status

      • CRA-2.1.1

        The legal status of a licensed crypto-asset service licensee must be:

        (a) For undertaking Category-1, Category-2 and Category-3 regulated crypto-asset services
        (i) A Bahraini company with limited liability ("W.L.L."); or
        (ii) A Bahraini joint stock company (B.S.C.); or
        (iii) [This Subparagraph was deleted in April 2023].
        (b) For undertaking Category-4 regulated crypto-asset services (Licensed crypto-asset exchange)
        (i) A Bahraini joint stock company (B.S.C.); or
        (ii) [This Subparagraph was deleted in April 2023].
        Amended: April 2023
        Added: April 2019

      • CRA-2.1.2

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

    • CRA-2.2 CRA-2.2 Condition 2: Mind and Management

      • CRA-2.2.1

        Licensees must have designated place of business within the Kingdom of Bahrain. Licensees with their Registered Office in the Kingdom of Bahrain must maintain their Head Office in the Kingdom.

        Amended: April 2023
        Added: April 2019

      • CRA-2.2.2

        The CBB requires the following approved persons occupying controlled functions must be resident in Bahrain:

        (a) Chief Executive Officer or General Manager;
        (b) Compliance Officer;
        (c) Money Laundering Reporting Officer;
        (d) Head of Finance;
        (e) Head of Risk Management;
        (f) Head of Operations; and
        (g) Chief Information Security Officer.
        Amended: April 2023
        Added: April 2019

      • CRA-2.2.3

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

    • CRA-2.3 CRA-2.3 Condition 3: Substantial Shareholders

      • CRA-2.3.1

        Licensees must satisfy the CBB that their substantial shareholders are suitable and pose no undue risks to the licensee.

        Added: April 2019

      • CRA-2.3.2

        For the purposes of this Module "substantial shareholder" means a person who alone or together with his associates:

        (a) Holds not less than 5% of the shares in the licensee; or
        (b) Is in a position to control not less than 5% of the votes in the licensee.
        Added: April 2019

    • CRA-2.4 CRA-2.4 Condition 4: Board and Employees

      • CRA-2.4.1

        As per Article 65(a) of the CBB law, those nominated to carry out controlled functions must satisfy CBB's approved person's requirements.

        Added: April 2019

      • CRA-2.4.2

        The definition of controlled functions as well as the CBB’s approved person requirements are contained in Section CRA-1.7.

        Amended: April 2023
        Added: April 2019

      • CRA-2.4.3

        The licensee's staff must collectively provide a sufficient range of skills and experience to manage the affairs of the licensee in a sound and prudent manner. Licensees must ensure their employees meet any training and competency requirements specified by the CBB.

        Added: April 2019

    • CRA-2.5 CRA-2.5 Condition 5: Financial Resources

      • CRA-2.5.1

        Licensees must maintain a level of financial resources, as agreed with the CBB, adequate for the level of business proposed. The level of financial resources held must always equal or exceed the minimum requirements contained in Chapter CRA-3.

        Amended: April 2023
        Added: April 2019

      • CRA-2.5.2

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

      • CRA-2.5.3

        The CBB, in its complete discretion may ask for a guarantee from the potential licensee’s (applicant’s) controlling or major shareholders or the ultimate beneficiaries on a case by case basis as it deems appropriate/necessary as part of the required documents to be submitted as mentioned in Paragraph CRA-1.2.4.

        Added: April 2023

    • CRA-2.6 CRA-2.6 Condition 6: Systems and Controls

      • CRA-2.6.1

        Licensees must maintain systems and controls that are adequate for the scale and complexity of their activities. These systems and controls, at a minimum, must meet the requirements contained in Chapter CRA-5 (Technology Governance and Cyber Security), Chapter CRA-6 (Risk Management) and the requirements of Module HC (High-level Controls) of the CBB Rulebook Volume 6.

        Amended: April 2023
        Added: February 2019

      • CRA-2.6.2

        Licensees must maintain adequate segregation of responsibilities in their staffing arrangements, to protect against the misuse of systems or errors. Such segregation must ensure that no single individual has control over all stages of a transaction.

        Added: April 2019

      • CRA-2.6.3

        Licensees must maintain systems and controls that are adequate to address the risks of financial crime occurring in the licensee. These systems and controls must meet the minimum requirements contained in Module AML of the CBB Rulebook Volume 6.

        Amended: April 2023
        Added: February 2019

      • CRA-2.6.4

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

      • CRA-2.6.5

        Licensees must, in connection with any client assets received in the course of their business, establish and maintain separate client accounts, segregated from those used for their own funds, as specified in Section CRA-4.5.

        Amended: April 2023
        Added: February 2019

      • CRA-2.6.6

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

      • CRA-2.6.7

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: February 2019

    • CRA-2.7 CRA-2.7 Condition 7: External Auditor

      • CRA-2.7.1

        Pursuant to Article 61 of the CBB Law, Licensees must appoint external auditors, subject to prior CBB approval. Licensees must comply with the minimum requirements regarding auditors contained in Section CRA-4.2.

        Amended: April 2023
        Added: February 2019

      • CRA-2.7.2

        Applicants must submit details of their proposed external auditor to the CBB as part of their license application.

        Added: April 2019

    • CRA-2.8 CRA-2.8 Condition 8: Other Requirements

      • Books and Records

        • CRA-2.8.1

          Licensees must maintain comprehensive books of accounts and other records, which must be available for inspection within the Kingdom of Bahrain by the CBB, or persons appointed by the CBB, at any time. Licensees must ensure that all relevant books and other information, as may be required by the CBB, are kept for a minimum period of 10 years.

          Amended: April 2023
          Added: February 2019

      • General Conduct

        • CRA-2.8.2

          Licensees must conduct their activities in a professional and orderly manner, in keeping with good market practice standards. Licensees must comply with the general standards of business conduct as well as the standards relating to treatment of clients contained in Chapter CRA-4 and CRA-12.

          Added: April 2019

      • Additional Conditions

        • CRA-2.8.3

          Licensees must comply with any other specific requirements or restrictions imposed by the CBB on the scope of their license.

          Added: April 2019

        • CRA-2.8.4

          In addition, the CBB may vary existing requirements or impose additional restrictions or requirements, beyond those already specified for licensees, to address specific risks.

          Added: April 2019