Bahrain CBB Crypto Asset Service Provider (CASP) License Application Guide

allow. Foreign investment is allowed 100% Wholly-owned holding. The applicant must register as a Bahrain limited liability company (W.L.L.) or joint stock company (B.S.C.). But the first 4 Class exchange license only B.S.C.. Structure or overseas branch.

Absolutely prohibited. CBB strictly implements “substantive management (Mind and Management)"Require. Must establish a designated physical office in Bahrain, Have local IT infrastructure, Virtual offices prohibited.

In principle, it must be permanent. CEO, Compliance officer, money laundering reporting officer (MLRO) and chief information security officer (CISO) are subject to CBB’s “suitability (Fit & Proper)"review, Non-Bahrain residents are subject to special exemption from CBB.

Divided into four categories. Category 1 is for consulting brokers only (client assets are prohibited); Category 2 allows custody and agency transactions (self-operation prohibited); Category 3 allows self-operated market making; Category 4 is the highest authority, Allowed to operate crypto asset exchanges.

Legal funds must be paid in full and deposited in a local bank in Bahrain. Category 1 25,000 BHD; Category 2 100,000 BHD; Category 3 200,000 BHD; Category 4 Exchange 300,000 BHD. In addition, coverage is required 3 Current assets for monthly operating expenses.

License does not automatically confer uniform tax exemption. Entities should be assessed separately, income, VAT, Applicable rules for cross-border payments and large groups, etc., All crypto business income or every transaction fee cannot be described as 0% corporate tax or the same VAT treatment.

Application preparation should be distinguished, integrity review, Approval in principle and formal permission, The time varies depending on the business and replacement parts. Approval in principle does not mean formal operation, It does not constitute a commitment to open a bank account..

A regulatory sandbox is an experimental arrangement with specific conditions and scope, It should not be viewed as a uniform mandatory stage for all crypto license applications or as a shortcut to obtaining a license. Whether it is applicable should be confirmed according to CBB’s current procedures..

Can refer toBahrain Cryptocurrency License CASP / Supervision and application information from CRA authorities, Check corresponding systems and processing information.

It is strictly prohibited to put it on the shelves at will. Services may only be provided in respect of "Accepted Crypto-Assets" with CBB's prior written approval. Issuance of stablecoins must be registered with B.S.C.. structure and satisfy 1:1 Legal currency pledge, DTOs with security characteristics must be approved for white paper.

support. After obtaining the IPA, you can open a basic corporate account in a local bank in Bahrain for capital verification.. However, banks will perform independent and rigorous KYC/AML due diligence on crypto companies., The actual account opening period needs to be reserved 2-3 months.

Should be based on the actual CBB license category, Conditions and current rules for arranging external financial audits, Customer asset and technology security inspection. The scope and frequency of various inspections vary, Do not make quarterly financial audits and semi-annual technical tests a unified condition for all crypto entities.

The license is renewed annually. The licensee must annually 12 moon 1 Pay the license fee for the next year before. Based on total operating expenses for the previous fiscal year 0.25% Calculate and collect, The legal minimum limit for Category 4 licenses is 5,000 BHD, The upper limit is 12,000 BHD.

No. Sandbox testing has specific scope and conditions, Exit testing and commercial operations should be handled according to actual formal authorization, Not describing participation in the sandbox as providing unlimited service to all customers.

Submitting an application or obtaining a principled opinion does not mean that you are officially allowed to operate.. Final authorization should be confirmed first, Licensing conditions and prerequisites for starting business; Technical testing should be distinguished from real client funds and regulated transactions.

New products first, Customer Category, A case-by-case comparison of capital flows and operating areas with existing registrations or authorizations. If it exceeds the scope or affects the applicable conditions, Corresponding changes should be completed, It will be launched after notification or separate application..

Outsourcing does not mean transferring the responsibilities of the licensed entity. It is recommended to clarify the scope of services, data access, audit, accident report, Re-sourcing and exit arrangements, and retain sufficient internal personnel to supervise suppliers.

Compare legal names, Registration or license number, Authorized business, Licensing conditions and actual website. Group brand, The identity of affiliated companies and agents cannot replace the authorization of the contracting entity., Should be cross-checked with official records and licensing documents.

Both may change the control relationship. Direct and indirect shareholdings should be identified before trading, Significant impact and changes in ultimate controller, Check approval or notification procedures, and write regulatory conditions into the delivery arrangements.

First check whether the license conditions are still met, Arrange temporary supervision, Business restrictions and handovers, and complete applicable personnel notifications or new hire approvals. Nominal substitutes cannot solve gaps in actual performance of duties.

It is recommended to record complaints, Products and people involved, Processing time limit, Evidence and conclusion, and inform customers of applicable upgrade channels.. Processes should be rectified when systemic problems are discovered, Instead of just closing a single ticket.