While the legality of Bitcoin remains a contentious issue in many countries, Bahrain appears to be one of the more crypto-friendly nations. The Bahraini government has been supportive of blockchain technology and has even launched its own cryptocurrency, the Bahraini Dinar (BHD).
There does not appear to be any specific regulations regarding Bitcoin in Bahrain, but the Central Bank of Bahrain (CBB) has issued a warning to investors about the risks associated with digital currencies. Despite this warning, it seems that Bitcoin is still legal in Bahrain.
The CBB’s warning is in line with other central banks’ statements on Bitcoin. For example, the Saudi Arabian Monetary Authority has said that “Bitcoin is not recognized or regulated” in the country.
In UAE, the Securities and Commodities Authority (SCA) released a statement in January 2018 saying that “virtual currencies are not recognized as legal tender in the UAE” and that “no regulatory authority in the UAE currently supervises or regulates” them.
However, despite these warnings from central banks, it seems that Bitcoin is still legal in Bahrain. This is likely because there are no specific regulations regarding cryptocurrencies in Bahrain.
So while investors are warned about the risks associated with digital currencies, they are not outright banned.
While Bitcoin may be legal in Bahrain, that doesn’t mean that it’s widely accepted or used. In fact, there doesn’t appear to be much infrastructure for buying or selling cryptocurrencies in Bahrain.
However, this could change in the future as the country continues to be supportive of blockchain technology and innovation.