Fintech & payments regulation in Bahrain (2026)

Legal framework

Central Bank of Bahrain (CBB) under the CBB and Financial Institutions Law 2006 (Decree No. 64 of 2006); payments/e-money and open banking are regulated primarily through CBB Rulebook Volume 5 (Ancillary Service Providers), including Module AU (Authorisation) and Module OB (Open Banking); crypto-asset services are regulated under Volume 6 Module CRA.

Key points: digital payments & fintech in Bahrain

1. 01PSP & e-money licensing

   PSPs and e-money issuers are licensed by the CBB under Volume 5 of the Rulebook (Ancillary Service Providers), Module AU, pursuant to Article 40 of the CBB Law which prohibits provision of Regulated Services without a CBB licence. May 2026 amendments to Volumes 3 and 4 updated authorisation, capital, governance and operational-resilience conditions for PSPs, AISPs and PISPs.

   cbb.gov.bh cbb.gov.bh

2. 02Open banking (BOBF)

   The CBB mandated open banking for all retail banks in December 2018 and formalised the Bahrain Open Banking Framework (BOBF) in October 2020, with a second phase in September 2021. The dedicated Module OB in Volume 5 governs AISP/PISP conduct, strong customer authentication, API specifications, security standards and customer-journey guidelines.

   cbben.thomsonreuters.com pinsentmasons.com

3. 03Instant payment rail

   Bahrain operates a national instant-payment system through BENEFIT Company; Fawri+ provides 24/7 real-time credit transfers (up to BHD 1,000 per account per day) and Fawri handles same-business-day domestic transfers, underpinning BenefitPay's mobile wallet ecosystem.

   fastpayments.worldbank.org transfi.com

4. 04Regulatory sandbox

   The CBB launched a formal fintech regulatory sandbox in 2017 (one of the first in the MENA region), offering a nine-month testing window (extendable by three months) open to CBB licensees and local/foreign firms whose solutions demonstrate innovation, customer benefit and intent to deploy in Bahrain.

   cbb.gov.bh tamimi.com

5. 05BNPL rules (in-progress)

   BNPL is currently captured only indirectly through February 2022 amendments to Volume 5 covering innovative short-term consumer-finance models. The CBB closed a consultation in late 2025 on a dedicated BNPL module that would treat BNPL as regulated short-term credit with capital, conduct, consumer-protection, disclosure, complaints-handling and digital-security requirements; the final module is under review.

   pinsentmasons.com mondaq.com

6. 06Crypto-asset services

   Crypto-asset services (custody, trading, brokerage, portfolio management, advisory) require a CBB licence under Volume 6, Module CRA, first issued February 2019 and expanded in March 2023 to include Digital Token Offerings with security-like characteristics. The module covers licensing categories, minimum capital, governance, AML/CFT, safeguarding and cybersecurity.

   cbb.gov.bh cbb.gov.bh

Timeline of decisions

1. 4 Jul 2025Law · official
   CBB issues GCC's first stablecoin issuance and offering framework

   The Central Bank of Bahrain introduced the Stablecoin Issuance and Offering (SIO) Module in Volume 6 of its Rulebook, establishing licensing, reserve, governance and redemption rules for fiat-referenced (BHD, USD or other approved currency) stablecoin issuers. It is the Gulf's first comprehensive stablecoin regime.

   Central Bank of Bahrain

2. 1 Sept 2024Guidance
   Open Banking service requirements extended to legal entities

   A CBB circular made new Open Banking obligations effective, requiring consent and authentication, licensee disclosures and API performance reporting, and extending account-information and payment-initiation services to corporate/institutional customers rather than just individuals.

   The Paypers

3. 28 Oct 2020Guidance · official
   Launch of the Bahrain Open Banking Framework

   The CBB launched the comprehensive Bahrain Open Banking Framework (operational guidelines, security and customer-experience standards, technical API specifications and governance), making Bahrain the first MENA jurisdiction to mandate technical open-banking standards.

   Central Bank of Bahrain

4. 1 Dec 2018Law
   CBB issues Open Banking rules for ancillary service providers

   The CBB added Open Banking rules to Volume 5 (Ancillary Service Providers), establishing licensing for account-information service providers (AISPs) and payment-initiation service providers (PISPs), the regulatory foundation for the later open-banking framework.

   CBB Rulebook (Thomson Reuters)

5. 1 Jun 2017Guidance · official
   CBB launches region's first onshore FinTech Regulatory Sandbox

   The CBB introduced a regulatory sandbox letting licensed and unlicensed fintech firms test technology-based solutions for up to a year under supervision, a foundational mechanism for licensing new payment and fintech business models in Bahrain.

   Central Bank of Bahrain

6. 6 Sept 2006Law · official
   Central Bank of Bahrain and Financial Institutions Law enacted

   Decree No. 64 of 2006 promulgated the CBB Law, creating the Central Bank of Bahrain as the single integrated regulator of the financial sector, the statutory basis for all licensing of banks, payment service providers, money transmitters and fintech firms.

   Central Bank of Bahrain

Sources

1. 1.cbb.gov.bh/licensing-registration/
2. 2.cbb.gov.bh/fintech/
3. 3.cbben.thomsonreuters.com/entiresection/506901
4. 4.cbb.gov.bh/wp-content/uploads/2019/01/Additions-to-Module-GR-Ancillary-Service-p
5. 5.cbb.gov.bh/wp-content/uploads/2022/08/Vol-6-CRA.pdf
6. 6.cbb.gov.bh/media-center/cbb-issues-a-new-regulatory-framework-for-digital-tokens
7. 7.fastpayments.worldbank.org/sites/default/files/2021-10/World_Bank_FPS_Bahrain_Fawri+_Case_Study.
8. 8.pinsentmasons.com/out-law/news/bahrain-takes-lead-open-banking-in-the-middle-east
9. 9.pinsentmasons.com/out-law/news/bahrain-bnpl
10. 10.tamimi.com/law-update-articles/central-bank-bahrain-cbb-launch-regulatory-sandbo
11. 11.transfi.com/blog/bahrains-payment-rails-how-they-work---fawri-benefitpay-real-tim
12. 12.mondaq.com/financial-services/1206076/legal-update-buy-now-pay-later