The Central Bank of Bahrain (CBB) Grants PSP License to BPay Global
The Central Bank of Bahrain (CBB) has officially granted a Payment Service Provider (PSP) license to BPay Global B.S.C., a subsidiary of Binance Group. This is no ordinary license—it is the first time a Binance-owned entity has been officially recognized as a payment service provider by a national financial authority.
This means that BPay Global can now legally handle fiat transactions, including depositing, withdrawing, and topping up funds.
Bahrain Eyes Global RWA Spotlight
In recent months, Bahrain has been increasingly aggressive in strengthening its reputation as a digital financial hub. For example, ATME, a licensed local digital asset exchange, has just released its first gold token. This token represents one kilogram of physical gold and can be traded or exchanged for real gold.
ATME’s entry into the $1.2 billion real-world asset (RWA) tokenization market is a strong signal that Bahrain wants to compete on the global stage previously dominated by PAXG and XAUT.
A More Mature Regulatory Framework
On the other hand, the CBB itself is not sitting idly by. In March, they began developing specific regulations for the issuance of stablecoins. This is to reduce transaction costs and expand financial inclusion.
If this regulation goes according to plan, stablecoin issuers will have clear legal guidelines, and Bahrain can stand more firmly in the midst of the regional digital financial ecosystem.
Bahrain’s Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa, even emphasized that his country has a special legal framework for crypto matters. He also reminded that investor protection and cybersecurity are non-negotiable, especially when talking about digital assets.
He clearly differentiated between private crypto and central bank digital currencies such as the “digital dinar” which is still in the exploration stage.
Combining Tradition and Innovation
Interestingly, Bahrain’s approach does not reject tradition. Instead, they try to pair traditional financial approaches with blockchain-based innovation. An example of this was clearly seen last October, when the National Bank of Bahrain (NBB) launched a Bitcoin-based structured investment product.
This product is designed for accredited investors and offers the potential for profit from BTC price movements, but still provides protection on the downside. So it’s a kind of storm jacket for those who want to play in extreme weather.
Regional Competition Heats Up in Crypto and Data
However, Bahrain must also look at the steps of its neighbors. The CNF report states that the United Arab Emirates (UAE) is preparing a $1.4 trillion investment plan to the US, focusing on the AI, semiconductor, energy, and data infrastructure sectors. MGX and ADNOC are at the forefront, including in their expansion strategies in the crypto world and data centers.
More than $25 billion will be poured into strengthening the energy network and data centers. The first project is even targeted to start operating in the next three years. So yes, if Bahrain does not want to be left behind, steps such as a license for BPay Global are a must, not just prestige.