Best Crypto Exchanges in Bahrain

Best Cryptocurrency Exchanges in Bahrain

We have evaluated the 23 cryptocurrency exchanges available to users in Bahrain and found the top options. Our team considered factors like compliance with the Central Bank of Bahrain (CBB) regulations, fee structures, ease of use, supported cryptocurrencies, and BHD deposit options. Below is a comparison table of the top 5 exchanges for traders in Bahrain.

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1. Rain

Rain is based in Manama and is the leading cryptocurrency exchange in Bahrain, known for its exceptional security features and strong regulatory compliance. Tailored specifically for Bahraini investors, it can be used in Arabic and offers free BHD deposits through local methods like Fawri and Fawri+. It offers over 50 cryptocurrencies to trade on spot markets.

It is licensed by the Central Bank of Bahrain as a Category 3 Crypto-Asset Services Provider, making it the most secure exchange in the country. There is dedicated live local customer support to cater to the needs of Bahraini users. The platform also provides an Over-The-Counter (OTC) desk, ideal for large-scale transactions and institutional investors.

• Fees: Zero trading fees with competitive spreads starting at 0.2% per trade.
• Supported Assets: Over 50 cryptocurrencies.
• Regulation & Licensing: Rain Management, W.L.L. is registered under Commercial Registration No. 118040-1 with the CBB.‍
• BHD Deposit Methods: Bank transfers, Fawri, Fawri+, IBAN, debit cards, and credit cards.

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2. eToro

eToro is a top multi-asset trading platform in Bahrain, offering a diverse range of 4,500 cryptocurrencies, stocks, commodities, and ETFs. It is known for its global regulatory compliance and is licensed by the ADGM to conduct operations across the Middle East. The multilingual interface can also be used in Arabic, providing accessibility to its 30 million users.

It has a unique feature called CopyPortfolios, which allows users to invest in a curated collection of assets managed by experts. There is also a copy trading service that allows users to mimic the trades of successful traders. These features and the platform's regulatory compliance make eToro a strong choice for Bahraini investors looking to diversify their portfolios.

• Fees: eToro uses a spread fee model, generally about 1%.
• Supported Assets: Over 4,500 cryptocurrencies, commodities, ETFs, and stocks.
• Regulatory & Licensing: eToro is licensed by the ADGM’s Financial Services Regulatory Authority (FSRA) under Financial Services Permission Number 220073.
• BHD Deposit Methods: Bank transfers and debit or credit cards.

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3. Bybit

Bybit is a top derivatives exchange, focusing on futures trading and perpetual contracts for over 1,300 cryptocurrencies. The platform is designed for experienced traders, offering high leverage options up to 100x, advanced trading tools, and deep liquidity with a daily trading volume exceeding $25 billion. It serves over 40 million users across Bahrain and 160 other countries.

Aside from trading, Bybit features a variety of investment options, such as staking, lending and borrowing services, allowing users to earn yields on their idle assets. It also has a robust insurance fund to protect users against negative balances. The platform regularly introduces innovative products like option contracts and DeFi services like an NFT marketplace and native crypto wallet.

• Fees: Maker fee of 0.02% and a taker fee of 0.055%.
• Supported Assets: Over 1,300 digital assets.
• Regulation & Licensing: Complies with Bahraini regulatory standards and is based in Dubai.
• BHD Deposit Methods: Bank transfers, Apple Pay, Google Pay, Wise, credit and debit card options and more.

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4. OKX

OKX is tailored for institutions and professional traders. The platform delivers deep liquidity, advanced trading tools, and high-speed transactions. It offers a comprehensive suite of products, including spot trading, futures, options, and a powerful Web3 wallet. The infrastructure is designed for scalability, ensuring ultra-low latency API connectivity and efficient capital management.

It features a dedicated OTC liquidity network, providing professional traders and institutions with access to block trades and custom strategies. The platform’s security protocols are advanced, with multiple layers of protection to safeguard users' assets. For investors looking to grow their holdings, OKX offers staking, lending, and other earning opportunities.

• Fees: 0.1% maker fees and 0.2% taker fees.
• Supported Assets: Over 350 cryptocurrencies.
• Regulation & Licensing: Governed by the Dubai Virtual Assets Regulatory Authority (VARA) and available in Bahrain.
• BHD Deposit Options: Bank transfers, credit and debit cards.

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5. Binance

Binance is the largest cryptocurrency exchange globally, serving over 200 million users in 100 countries, including Bahrain. Users can trade over 350 digital assets on spot, margin, and futures markets or engage in peer-to-peer (P2P) transactions. A key feature is its high crypto staking rewards, allowing users to earn significant returns up to 230% APY on their assets. 

In addition to staking, Binance offers various earning opportunities through its Launchpad, where users can buy or earn new tokens, and its NFT marketplace, where trading, staking, and loan options are available. With its global reach, secure infrastructure, and 24/7 customer support, Binance is a top choice for crypto enthusiasts in Bahrain.

• Fees: Spot trading fee of 0.1%.
• Supported Assets: Over 350 cryptocurrencies.
• Regulation & Licensing: Licensed by the ADGM and available in Bahrain.
• BHD Deposit Methods: Credit or debit cards only.

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Is Crypto Regulated in Bahrain?

Yes, cryptocurrency is regulated in Bahrain under a comprehensive framework established by the Central Bank of Bahrain (CBB). In March 2023, the CBB introduced significant amendments to its Crypto-Assets (CRA) Module to align with the evolving crypto market and enhance investor protection. These updates expanded the regulatory scope to include "Digital Token Offerings," ensuring that tokens with characteristics of securities are appropriately regulated. 

The amendments also introduced stricter safeguards to protect clients' assets, reinforcing Bahrain's commitment to a secure and transparent crypto market. Additionally, the CBB now allows licensed crypto firms to engage in broader activities, provided they obtain the necessary approvals. This regulatory approach balances innovation with investor protection.

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How is Crypto Taxed in Bahrain?

Bahrain does not have a specific tax for digital currencies, as the country does not levy personal income tax. However, businesses in Bahrain that engage in crypto transactions may be subject to corporate taxation under the general tax regulations governed by the National Bureau for Revenue (NBR). Bahrain does not currently impose value-added tax (VAT) specifically on transactions involving crypto, though standard VAT rules apply to goods and services.

For businesses, any profits generated from crypto transactions are typically considered part of the company’s taxable income and taxed under Bahrain’s corporate tax laws. While individual investors are not required to pay capital gains tax on their crypto earnings, it is important for both residents and businesses to remain aware of any potential regulatory updates.

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How to Buy Bitcoin in Bahrain

For those in Bahrain who are new to cryptocurrency, purchasing Bitcoin through a digital asset exchange is a simple process. Follow this guide to get started:

1. Create an Account: Begin by visiting an exchange that operates in Bahrain. Sign up for an account and complete the necessary verification process, which typically involves submitting a valid photo ID and additional documentation, such as proof of address.
2. Deposit Bahraini Dinar (BHD): Once your account is set up, navigate to the deposit section and select BHD as your deposit currency. Enter the amount you wish to deposit and fund your account using one of the available payment methods.
3. Choose Bitcoin: Go to the trading section and search for Bitcoin (BTC). Select the BHD/BTC trading pair to see the current market rate. You can choose from different trading options, such as market and limit orders, based on your preferences.
4. Execute the Trade: When you’re ready to buy, click 'buy' or 'trade' to purchase Bitcoin. Enter the amount of Bitcoin you wish to buy or specify the BHD amount you’re willing to spend. Review the order details, including the price and any applicable fees, then complete the trade.

This guide breaks down how users in Bahrain start trading Bitcoin, covering essential steps from account creation on exchanges to executing your first trade.

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Bottom Line

In conclusion, Bahrain’s crypto market is expanding rapidly, supported by a robust regulatory framework and growing interest among residents. With top exchanges like Rain, eToro, Bybit, OKX, and Binance offering a range of services tailored to different trading needs, Bahraini investors have excellent options to explore and engage in the crypto space.