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Crypto license in Bahrain — CASP license

Crypto license in Bahrain — CASP license

Obtain a crypto-asset service provider license from the Central Bank of Bahrain

  • A leading financial hub in the GCC region
  • No corporate income tax
  • Single license covering a broad range of crypto-asset activities
  • Regulatory decision within 60–90 days

Unlock your options — consult with an expert today

About the service

The Kingdom of Bahrain is one of the few jurisdictions in the Middle East with a fully developed regulatory framework for crypto-assets. The Central Bank of Bahrain (CBB) has introduced a dedicated Crypto-Asset Module (CRA), which regulates all key aspects of crypto-asset service provider activities.

Mirsatori supports projects throughout the full licensing journey — from strategic assessment and structuring to obtaining the CASP license and launching operations. We ensure alignment with CBB requirements and provide end-to-end regulatory support, including ongoing communication with the regulator at every stage of the process.

Why institutional projects choose Bahrain for licensing

Transparent regulation The Central Bank of Bahrain has introduced a dedicated Crypto-Asset Module (CRA) with clear requirements for licensing, supervision, and compliance. This provides a high level of legal certainty and predictable regulatory expectations.
Strategic location Bahrain is a recognised financial hub in the Gulf, offering access to GCC markets, as well as Asia and Europe. It sits at the intersection of three major macro-regions.
Tax efficiency Bahrain applies no corporate income tax for most crypto-asset business activities. This allows tax exposure to be structured and optimised at the planning stage.
Fintech ecosystem and government support CBB sandbox frameworks enable the testing of innovative products, supported by broader government fintech initiatives and partnerships with global industry players.
Access to banking A CASP licence improves access to corporate banking in Bahrain. It provides a regulated pathway for fiat flows, payments, and processing capabilities that are typically unavailable to unregulated entities.
Fast licensing timelines The Central Bank of Bahrain can issue a regulatory decision from 60 days after submission of a complete application package. The process is structured, transparent, and timeline-driven.

Digital asset activities requiring a licence

  • Buying and selling crypto-assets against fiat currencies. Conversion between crypto-assets and traditional (fiat) currencies, including brokerage and dealing services.
  • Crypto-to-crypto exchange services. Trading and conversion between different types of crypto-assets.
  • Custody and safekeeping of crypto-assets. Holding client crypto-assets and managing private keys or other access credentials on their behalf.
  • Crypto-asset portfolio management. Discretionary management and structuring of investment portfolios composed of crypto-assets.
  • Crypto investment advisory services. Providing investment advice, recommendations, and strategies related to crypto-assets.
  • Operation of crypto-asset trading platforms. Establishing and operating exchanges or trading venues that facilitate transactions in crypto-assets between users.
Practical guide to crypto business licensing in Bahrain

Practical guide to crypto business licensing in Bahrain

  • Capital and corporate structure requirements of the Central Bank of Bahrain
  • Comprehensive list of documents required for the licence application file
  • Timelines, stages, and cost structure of the licensing process
Get a guide

Business models that require mandatory licensing

Trading platforms and exchange services

Crypto exchanges, P2P platforms, and brokerage services facilitating transactions in crypto-assets. A licence is required to operate legally with fiat currencies and to obtain access to corporate banking in Bahrain.

Crypto-asset custody services

Wallet providers and platforms that safeguard client crypto-assets. Holding client funds is among the most highly regulated activities and requires strict compliance with security, governance, and risk management standards.

Crypto processing and payment solutions

Companies integrating crypto payments for merchants, including the acceptance of crypto-assets, conversion into fiat currency, and settlement to counterparties. Without a regulatory licence, banks typically decline cooperation with such businesses.

Ready to scale your crypto business in the Gulf region?

Ready to scale your crypto business in the Gulf region?

Book a consultation — we will review your business model and develop a tailored roadmap for obtaining a CASP licence in Bahrain.

Unlock your options — consult with an expert today

Key requirements for obtaining a CASP licence in Bahrain

Licensing of crypto-asset activities requires compliance with the Central Bank of Bahrain’s regulatory standards across four core areas.

Share capital and liquidity
  • Paid-up share capital: the required share capital depends on the licence category and the scale of proposed activities. Minimum thresholds typically start from BHD 25,000 (approx. USD 66,000) and may reach BHD 300,000 (approx. USD 795,000) for larger operators. The share capital must be fully paid up before the licence is granted.
  • Source of funds and source of wealth: you must evidence the lawful origin of the company’s capital (source of funds) and disclose the beneficiaries’ overall wealth origin (source of wealth) — for example, business income, investments, inheritance, or other legitimate sources.
  • Operational reserves and liquidity buffer: the Central Bank generally expects applicants to maintain an adequate liquidity buffer (often 6–12 months of operating runway) to absorb operational risks and potential losses.
Share capital and liquidity
Personnel and governance
  • Key roles and regulatory approval: the Central Bank must approve individuals performing controlled functions — typically including directors, the CEO, the head of information security, the compliance officer, and the MLRO.
  • Fit-and-proper assessment: all senior appointments are subject to a fit-and-proper review covering professional competence, track record and reputation, and the absence of relevant financial crime convictions or regulatory sanctions.
  • Local substance: applicants are expected to maintain a physical office in Bahrain and appoint an authorised local representative to liaise with the regulator.
Personnel and governance
Compliance (AML/KYC)
  • AML/CFT policies and procedures: you must implement robust AML/CFT controls, including customer due diligence (KYC), ongoing transaction monitoring, and suspicious activity reporting. These controls should align with FATF standards and applicable Bahrain AML/CFT requirements.
  • Appointment of an AML officer (MLRO): the firm must appoint a dedicated Money Laundering Reporting Officer (MLRO), approved by the Central Bank, with appropriate qualifications and relevant experience.
  • Regulatory reporting and audit: licensed firms are expected to submit quarterly and annual regulatory returns, undergo external audits, and keep internal compliance policies up to date based on regulatory expectations and risk assessments.
Compliance (AML/KYC)
Technology (IT and security)
  • IT systems and platform architecture: you must operate a robust technology stack capable of processing transactions, securely storing data, and preventing unauthorised access. The Central Bank typically reviews the system architecture as part of the licensing assessment.
  • Cybersecurity policies and controls: the firm is expected to implement comprehensive cybersecurity measures, including protection against external threats, an incident response and disaster recovery plan, and regular security testing.
  • Key management and wallet security (for custodians): for custody services, strong key management is essential — typically including the use of secure custody infrastructure such as hardware security modules (HSMs), multi-signature controls, and secure procedures for private key storage and access.
Technology (IT and security)

Step-by-step roadmap to obtaining a VASP licence: from assessment to launch

Step-by-step roadmap to obtaining a VASP licence: from assessment to launch

Diagnostic review and qualification

We analyse your business model — the specific services you intend to provide (exchange, custody, portfolio management, etc.) — and determine whether they fall within the definition of a CASP under Bahrain regulation. We identify the appropriate licence category and assess the Central Bank of Bahrain’s requirements in terms of capital, governance, staffing, and infrastructure.

Incorporation and corporate structuring

We establish the legal structure in Bahrain — typically a Joint Stock Company (BSC) or a branch of a foreign entity. This includes name reservation, preparation of constitutional documents, corporate bank account setup, and securing physical office premises in line with regulatory substance requirements.

Preparation of the licence application file

  • We compile the full submission package for the Central Bank of Bahrain, including:
  • a detailed business plan with financial projections
  • AML/CFT policies and compliance procedures
  • information security and data protection frameworks
  • internal control and risk management policies
  • documentation for candidates performing controlled functions (directors, MLRO, compliance officer, CEO, etc.)

Application submission and regulatory review

We submit the application to the Central Bank of Bahrain and manage the review process. This includes responding to regulatory queries, providing supplementary documentation, and refining the submission where required. The review period typically starts from 60 days following submission of a complete application package.

Licence approval and operational launch

Upon approval, the Central Bank of Bahrain issues the CASP licence. We support the operational rollout — finalising technical readiness, onboarding approved key personnel, implementing compliance controls, and launching client services within the regulatory timeframe.

Calculate the full budget for licensing your project

We prepare a comprehensive cost breakdown for licensing in Bahrain, covering company incorporation, paid-up share capital, regulatory filing and supervision fees, physical office lease, recruitment of key personnel, and implementation of the required technical infrastructure. The result is a realistic, regulator-aligned project budget tailored to your specific business model and licence category.

Get an estimate
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FAQ

How long does it take to obtain the licence?

The full cycle typically takes 3–4 months from project initiation. This includes company incorporation, preparation of the licence application file, and regulatory review by the Central Bank of Bahrain. The regulator generally issues a decision within 60 days after submission of a complete application package.

What is the minimum share capital requirement?

The required share capital depends on the licence category and the scope of proposed activities. Minimum thresholds start from BHD 25,000 (approx. USD 66,000) and may reach BHD 300,000 (approx. USD 795,000) for larger operators. The exact requirement is determined during the business model assessment phase.

Can the licence be obtained remotely?

Yes. Most stages of the process can be completed remotely, including document preparation, regulatory communication, and account opening procedures. Personal presence may be required for signing constitutional documents and, in some cases, for a final meeting with the Central Bank.

Is a physical office in Bahrain mandatory?

Yes. A physical office is a mandatory regulatory requirement for all CASP licensees. The premises must be operational (not virtual) and serve as the company’s place of business.

Can the company serve clients outside Bahrain?

Yes. A CASP licence does not restrict the geographical location of clients. Cross-border services are permitted, subject to compliance with AML/CFT requirements, sanctions screening obligations, and applicable local regulations in the target jurisdictions. Marketing activities in certain countries may require additional approvals or registrations.

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