Bahrain Central Bank launches stablecoin regulatory framework, intending to allow fiat-collateralized stablecoins

According to ChainCatcher, according to Financefeeds, the Central Bank of Bahrain (CBB) launched the stablecoin issuance and offering (SIO) regulatory module, becoming the first such comprehensive regulatory framework in the Gulf Cooperation Commission (GCC) region. This framework only allows fiat-collateralized stablecoins, which can anchor Bahraini dinars, US dollar or other fiat currencies clearly approved by the central bank, 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 scope of regulation covers the entire ecosystem, including custodians, wallet providers and payment service providers. The framework is consistent with international standards, with particular emphasis on anti-money laundering and anti-terrorism financing requirements.