The Central Bank of Bahrain has launched a regulatory framework for stablecoins, intending to allow fiat-collateralized stablecoins

ChainCatcher news, according to Financefeeds, the Central Bank of Bahrain (CBB) has launched a Stablecoin Issuance and Offering (SIO) regulatory module, becoming the first comprehensive regulatory framework of its kind in the Gulf Cooperation Council (GCC) region.

The framework only allows fiat-backed stablecoins, which can be pegged to the Bahraini Dinar, the US Dollar, or other fiat currencies explicitly approved by the central bank, and prohibits algorithmic or commodity-backed stablecoins. Issuers must obtain a central bank license and meet strict prudential standards, including maintaining reserves in high-quality liquid assets and undergoing regular external audits. The regulatory scope covers the entire ecosystem, including custodians, wallet providers, and payment service providers. The framework aligns with international standards, with a particular emphasis on anti-money laundering and counter-terrorism financing requirements.