Analysis
Bahrain's Four Crypto Licence Categories: 5 Firms Hold Category 3, 3 Hold Category 4
What each CBB crypto-asset licence category may do, and who holds it.
The short version: The CBB licenses crypto-asset service providers in four categories that differ in what they may do: only Category 4 may operate an exchange, and only Categories 2–4 may offer custody (CBB Rulebook, CRA-1.1). Today the directory lists 0 in Category 1, 1 in Category 2, 5 in Category 3 and 3 in Category 4, plus 1 stablecoin issuer (AX Coin Bahrain).
| Licence | May undertake (CBB Rulebook) | Licensees |
|---|---|---|
| Category 1 | reception and transmission of orders; investment advice | 0 |
| Category 2 | trading as agent; portfolio management; custody; investment advice | 1 |
| Category 3 | trading as agent and as principal; portfolio management; custody; investment advice; digital token advisor | 5 |
| Category 4 | operating a licensed crypto-asset exchange; custody; digital token advisor | 3 |
| Stablecoin issuer | issuing single-currency fiat-backed stablecoins under the CBB's stablecoin framework | 1 |
Category 3 adds trading as principal to Category 2's services, and both categories may hold custody. Fasset Financial Services was granted a Category 3 licence on 23 January 2025 (CBB).
Sources
- CBB Licensing Directory www.cbb.gov.bh
- CBB Rulebook, CRA-1.1 cbben.thomsonreuters.com