TechFlow news, September 18 — According to Financefeeds, the Central Bank of Bahrain (CBB) has launched a regulatory module for stablecoin issuance and offering (SIO), becoming the first in the Gulf Cooperation Council (GCC) region to establish such a comprehensive regulatory framework.
The framework permits only fiat-collateralized stablecoins, which may be pegged to the Bahraini Dinar, the US dollar, or other fiat currencies explicitly approved by the central bank. Algorithmic or commodity-collateralized stablecoins are prohibited. Issuers must obtain a license from the central bank and meet strict prudential standards, including maintaining reserves in high-quality liquid assets and undergoing regular external audits.
The regulation covers the entire ecosystem, including custodians, wallet providers, and payment service providers. The framework aligns with international standards, with particular emphasis on anti-money laundering and counter-terrorism financing requirements.
