Why Bahrain?
Advantages
- Developed regulation in the field of crypto assets. Regulation is provided for several categories of licenses for service providers in the field of crypto assets. There is partial regulation of the issuance of investment crypto assets.
- Strategic location in the Middle East and North Africa region. The jurisdiction is optimal for entering the markets of this part of the world. The world's largest crypto exchange Binance, the Rain exchange, and the CoinMENA service have received licenses here.
- Active role of the regulator and supportive environment. The local regulator was one of the first among Middle Eastern countries to develop regulation in the field of crypto assets. It actively cooperates with foreign authorities in this area. In addition, it operates a regulatory sandbox for testing innovative business models and a specialized laboratory to promote new technologies.
- License acquisition time. The process of obtaining a license can take from 2 to 6 months, which is an average period compared to other jurisdictions.
Limitations
- Requirements for Bahraini citizenship and residency. Only Bahraini residents can be directors and key officers, and company shareholders must be Bahraini citizens.
- No special regulation regarding mining and DAO. For some, the lack of strict rules may be an advantage, but for those who value transparency and clear regulatory frameworks, uncertainty can be a serious obstacle.
Who is Bahrain suitable for
- Token issuers
- Crypto exchanges and exchangers
- P2P platforms
- Crypto wallets and depositories
- Crypto payment systems
Cost
The cost level for legalization in the jurisdiction is high.
- State fee for company formation: USD 450
- Authorized capital: varies depending on the license category from USD 66,000 to 796,000. In addition, the regulator may require additional capital contribution.
- State fee for license application review: USD 265.
- Annual license fee: 0.25% of their respective operating expenses, with minimum and maximum values for the license category, from USD 5,300 to USD 32,000.
Main stages of legalization
Company registration in Bahrain
- Filling out the registration form with key information and preparing data for registration
- Name reservation
- Obtaining a tax number
- Preparation of founding documents
- Registration in the commercial register of companies
Crypto licensing in Bahrain
- Preparation of the main documentation package (including business plan) and submission of application for crypto license
- Payment of the initial state fee for application review
- Regulator's review of the application
- Final approval