Best Crypto Exchanges in Bahrain

Top Crypto Trading Platforms in Bahrain

Our team has tested the 19 crypto exchanges offering services in Bahrain to identify the best options adhering to the Central Bank of Bahrain (CBB) regulations. This evaluation considered fee structures, BHD deposit options, supported cryptocurrencies, and platform features. Below is a comparison table of the five leading digital asset platforms for Bahraini investors.

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1. Rain

Rain is based in Manama, Bahrain and is the most established crypto exchange in the country.  Tailored specifically for Bahraini investors, it can be used in Arabic and offers free BHD deposits through local methods like Fawri and Fawri+. It is licensed by the Central Bank of Bahrain as a Category 3 Crypto-Asset Services Provider and is considered a highly secure platform. 

It also provides a Shari’a compliant trading environment with over 80 digital currencies supported for trading. The key features include an Over-The-Counter (OTC) desk for large transactions, and account management services for institutional investors. Additionally, Rain prioritizes security with its proprietary cold storage solutions, offering customers peace of mind. 

• Fees: Zero trading fees with competitive spreads, averaging 0.2% per trade.
• Supported Assets: Access to over 80 different 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. Bybit

Bybit is an exchange known for its comprehensive suite of trading services, including spot trading, derivatives, and margin trading, allowing users to engage in perpetual contracts with leverage up to 200x. There are 1,500 cryptocurrencies for spot trading and more than 440 futures contracts. Customers can also access staking services through the Earn product, which provides up to 240% APY.

In line with its commitment to inclusivity, Bybit has introduced Shariah-compliant accounts, developed in collaboration with CryptoHalal and ZICO Shariah Advisory Services. These accounts adhere to Islamic financial principles, offering products like Spot Trading, Dollar-Cost Averaging (DCA) Trading Bot, and Spot Grid Bot, ensuring ethical trading options for Muslim investors. 

• Fees: Maker is 0.02%, and taker is 0.055% for futures and a 0.1% spot trading fee.
• Supported Assets: Over 1,500 digital assets.
• Regulation & Licensing: Complies with Bahraini regulatory standards and is based in Dubai.
• BHD Deposit Methods: Apple Pay, Google Pay, Wise, credit and debit cards.

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3. OKX

OKX supports spot trading with access to over 300 crypto assets and 490+ active markets, providing users with diverse investment opportunities. For those interested in decentralized finance (DeFi), it offers a DeFi aggregator that enables users to participate in liquidity pools, yield farming, and crypto staking across multiple protocols and networks, plus a Web3 wallet, OKX Wallet.

Institutional clients benefit from OKX's advanced trading solutions, which include high-frequency trading capabilities, robust APIs, and a suite of risk management tools. The platform emphasizes security and transparency, maintaining a 1:1 reserve of all account assets and regularly publishing proof of reserves reports to build trust with its user base.

• 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 or credit and debit cards.

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4. Binance

Binance is the world’s largest crypto exchange, serving over 120 million registered users across Bahrain and 100 other countries. It is known for its extensive range of trading, staking, lending and borrowing services. The platform offers access to over 350 cryptocurrencies for spot trading and more than 300 derivatives contracts with up to 50x leverage supported.

In addition to trading, Binance offers innovative features like Auto-Invest, enabling users to automate their crypto investments through a dollar-cost averaging strategy. The platform also supports various trading bots, including Grid Trading and Time-Weighted Average Price (TWAP), to assist users in executing automated trading strategies. 

• 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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5. Bitget

Bitget has a comprehensive variety of trading options, including spot trading, futures contracts, and margin trading, allowing users to engage in diverse investment strategies. The key feature is the copy trading feature, allowing Bahraini investors to follow and replicate the strategies of more than 100,000 successful traders. This social trading feature is appealing to beginners who want to learn. 

Bitget’s features extend to advanced risk management tools, grid trading, and bot trading, enabling users to automate strategies. Furthermore, it offers a range of earning products, including staking and savings options, allowing users to earn passive income on their crypto holdings. The exchange has a daily trading volume exceeding $25 billion across both spot and futures order books.

• Fees: Spot trading fees starting at 0.1%.
• Supported Assets: Over 800 cryptocurrencies.
• Regulation & Licensing: Bitget operates under global regulatory standards but is not directly licensed in Bahrain.
• BHD Deposit Methods: Bank transfers, credit and debit cards, and peer-to-peer (P2P) trading options.

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Is Crypto Regulated in Bahrain?

Bahrain has taken proactive steps to establish a clear regulatory environment for digital assets. The Central Bank of Bahrain (CBB) is at the forefront of this regulatory evolution, implementing the Crypto-Assets (CRA) Module, which oversees various aspects of cryptocurrency activity, including licensing, asset custody, and exchange operations.

This framework by the CBB provides legal recognition of digital assets, focusing on secure tokenization processes, clear guidelines for custody and storage, and provisions for exchanging and transferring cryptocurrencies.

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How is Crypto Taxed in Bahrain?

In Bahrain, the taxation of crypto transactions is governed by the Value Added Tax (VAT) framework, as outlined by the National Bureau for Revenue (NBR). According to the NBR's Financial Services Guide, certain financial services are exempt from VAT, including specific dealings in money and securities. 

However, the application of VAT to crypto transactions depends on the nature of the service provided. For instance, services related to the exchange of cryptocurrencies may be subject to a 10% VAT, while other activities might be exempt. It's essential for businesses and individuals engaged in crypto-related activities to consult the NBR's guidelines to determine their VAT obligations.

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How to Buy Bitcoin in Bahrain

Bahraini investors can purchase Bitcoin on exchanges that support Bahraini Dinar (BHD) deposits and comply with the regulatory framework established by the Central Bank of Bahrain (CBB). Below is a breakdown of buying BTC in Bahrain:

1. Select an Exchange: Choose a platform licensed by the CBB to operate in Bahrain. Ensure that the exchange allows BHD deposits and complies with local regulations.
2. Create an Account: Begin by registering on your chosen exchange. You must provide essential details such as your name and email. Complete the account setup by verifying your identity through a government-issued ID and proof of residence.
3. Deposit Bahraini Dinar (BHD): Go to the platform’s deposit section and choose a payment method, such as bank transfer or debit car. Enter the amount in BHD that you’d like to invest, and follow the exchange’s steps to complete the deposit.
4. Locate Bitcoin (BTC): Once your deposit is confirmed, navigate to the trading or markets section of the exchange. Search for Bitcoin or “BTC” and find the BHD/BTC trading pair, enabling you to buy Bitcoin directly with Bahraini Dinars.
5. Execute the Purchase: Decide on the amount of Bitcoin you want to buy or the portion of BHD you’d like to invest. Double-check the transaction details, including fees, and confirm your purchase.

By following these steps, investors in Bahrain can purchase Bitcoin safely and in compliance with CBB’s regulatory standards.

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Bottom Line

Bahrain’s proactive regulatory framework, led by the Central Bank of Bahrain (CBB), provides a secure environment for digital asset investments. With exchanges like Rain, Bybit, OKX, Binance, and Bitget supporting BHD deposits, investors have a variety of reliable platforms to choose from.

Each platform offers distinct advantages, from Rain’s Shari’a-compliant services to Binance’s high-yield staking options, allowing users in Bahrain to participate in the global crypto market while staying compliant with local standards.