Bahrain Central Bank launches GCC's first stablecoin regulatory framework

According to Shenzhen Chao TechFlow, the Bahrain Central Bank has launched the regulatory module for the issuance and issuance of stablecoins, becoming the first such comprehensive regulatory framework in the GCC region. This framework only allows fiat currency collateralized stablecoins, and prohibits algorithmic or commodity collateralized stablecoins. Issuers are required to obtain a central bank license to meet strict prudent standards, including maintaining reserves in high-quality liquid assets and undergoing regular external audits. The regulatory scope covers custodians, wallet providers and payment service providers, the framework is consistent with international standards, emphasizing anti-money laundering and anti-terrorism financing requirements.