NBB issues the first Bitcoin investment product in Bahrain and GCC

In a partnership with ARP Digital, the National Bank of Bahrain (NBB) has issued the first Bitcoin investment product of its kind in Bahrain and in the GCC region. The new investment product provides exposure to Bitcoin’s growth while protecting investors.

The structured product is only available for accredited investors. It enables investors to benefit from Bitcoin’s positive performance but that stops at a specific threshold to protect the initial investment from any losses. The product is trying to offer exposure to Bitcoin but protects investors from the volatility of digital currencies. 

“We are proud to introduce this bespoke structured investment, which blends the appeal of digital asset exposure with the security of capital protection,” said Hisham AlKurdi, Group Chief Executive at NBB.

Bahrain competes with UAE

Bahrain and the UAE are considered some of the early adopters of cryptocurrencies in the MENA region and the top two most crypto-friendly countries in the GCC area. 

Recently, the UAE announced the complete removal of taxes from all cryptocurrency transactions. From November 15, 2024, any crypto transfer or conversion will be exempt from value added taxes (VAT).

Last month, Bahrain granted Crypto.com a crypto payment service provider (PSP) license, enabling the exchange to offer e-money and fiat-based products, such as the Crypto.com debit card.

In 2019, the Central Bank of Bahrain (CBB) introduced regulations for cryptocurrency exchanges. The regulation module titled Crypto-Asset Module provides all the rules for businesses involved in cryptocurrency activities. One of the biggest crypto exchanges is the local platform Rain which offers trading services to the MENA region. 

In 2022, the UAE officially started implementing a resolution about the regulation of virtual assets and their service providers. Today, Dubai Virtual Asset Regulatory Authority (VARA) is the main regulatory entity in the UAE. The country is considered a hub for cryptocurrencies and blockchain technology in the GCC region.

According to Chainalysis, the UAE and Saudi Arabia had the highest activity on DeFi platforms. This is due to the UAE’s progressive regulatory environment, while in Saudi Arabia, it was driven by its young population experimenting with new technologies. 

The Middle East & North Africa (MENA) area accounted for 7.5% of the total transaction volume globally between July 2023 and June 2024. The region is the seventh biggest cryptocurrency market around the world.