The post Bahrain Launches First Stablecoin Regulatory Framework appeared on BitcoinEthereumNews.com.

The Central Bank of Bahrain (CBB) has introduced a framework to launch a formal framework of stablecoins. It was a breakthrough in the regulation of digital assets in the country. The Stablecoin Issuance and Offering (SIO) Module became active this week. Bahrain Introduces Stablecoin Issuance and Offering (SIO) Module Bahrain has created the Stablecoin Issuance and Offering (SIO) Module. It will offer financial stability to the parties wishing to issue or offer stablecoins in the Kingdom. The purpose of the new framework is to provide the opportunity to use stablecoins in the Bahraini financial ecosystem in a compliant way. Stablecoin Issuance Offering (SIO) Source: CBB Notably, the SIO Module has been placed within a larger scheme by the Central Bank of Bahrain to increase electronic financial solutions without compromising the regulatory rules. The module prescribed governing, asset backing, redemptions, and auditing processes that stablecoin issuers must observe. In addition, it also ensured alignment with anti-money laundering (AML) and counter-terrorism financing (CFT) protocols. By doing so, the CBB will reate a reliable environment for both issuers and users of digital currencies pegged to fiat assets. New Framework to Govern Stablecoin Activities in Bahrain Under the SIO Module, any entity that wishes to issue, offer, or facilitate transactions in stablecoins must undergo a licensing process with the Central Bank of Bahrain. This includes submission of detailed business plans, audited financials, and clear disclosures about the asset backing the stablecoin. The framework mandates that stablecoins must be fully backed by high-quality liquid assets such as cash or cash equivalents. Besides, the module also specified how reserve assets should be extracted and periodical disclosure should be made to ensure clarity. Issuers must also ensure that customer funds are separate and should have documentation of 1:1 backing. Moreover, some externally recognized audit reports will be…

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Filed under: News - @ July 4, 2025 9:26 am