Middle East nation strengthens crypto oversight
The Kingdom of Bahrain has officially passed a wide-ranging law regulating both stablecoins and Bitcoin, aiming to make the country’s digital asset market safer and more transparent. The legislation, announced in September 2025, is part of Bahrain’s broader strategy to position itself as a leading hub for crypto innovation in the Middle East.
According to officials, the law sets clear standards for reserve backing, transparency, and consumer protection, aligning local requirements with global best practices. The framework also introduces stricter rules for crypto exchanges and custodians, obliging them to comply with regular audits and enhanced security protocols.
“Our priority is to provide a secure environment for investors and businesses while fostering innovation in the digital economy,” Bahraini regulators stated.
Why It Matters
- Market Confidence: By regulating both Bitcoin and stablecoins, Bahrain seeks to reduce risks of fraud and volatility.
- Regional Leadership: The move positions Bahrain ahead of several neighboring states in the Gulf region regarding crypto regulation.
- Attracting Investment: A transparent legal framework is expected to attract global crypto companies and institutional players to the country.
Bahrain’s new law marks a significant step in balancing investor protection and market growth, setting an example for other nations in the region considering similar regulation.
