Blog: Bahrain Cryptocurrency & Digital Assets Tax

Token Classification

Token Type	CBB Classification	VAT Treatment
Payment tokens (BTC, ETH)	Crypto-asset	Exempt (currency equivalent)
Security tokens	Digital security	Exempt (financial instrument)
Utility tokens	Depends on use	Standard-rated (service)
NFTs (art/collectibles)	Digital asset	Standard-rated (goods)
Stablecoins	Crypto-asset	Exempt (currency equivalent)

Exchange Operators

CBB-licensed crypto exchanges must register for VAT. Trading commissions are standard-rated (explicit fee for service). Spread-based income may be exempt (margin on financial transaction). Custody services — standard-rated. KYC/AML compliance costs — input VAT recoverable.

Crypto & Digital Assets Tax

Token Classification

Exchange Operators

Crypto Advisory