According to the Bahrain News Agency, the Central Bank of Bahrain announced on July 4th the launch of a stablecoin issuer licensing and regulatory framework aimed at ensuring the safe integration of stablecoins into the financial system. The new regulations allow licensed institutions to issue single currency stablecoins supported by Bahraini dinars, US dollars, or other approved fiat currencies. This measure aims to reduce the risk of unregulated stablecoins, enhance investor confidence, and promote sustainable growth in the industry.
The Executive Director of Market Development at the Central Bank stated that this move will consolidate Bahrain's position as a financial center in the Middle East. The head of the Capital Market Supervision Bureau emphasized that the new framework reflects the determination to comprehensively regulate cryptocurrency assets, including strengthening investor protection measures and market transparency. The policy was announced at a fintech event jointly organized by the Bahrain Economic Development Authority.
