Under the legislation, people can only receive a rally permit if they present a warranty cheque of 53,000$ to the government.
Authorities have said that the money will be used for probable damage during the demonstrations.
Abduljalil Khalil, a top member of the opposition Al Wefaq party said the law is against the constitution of Bahrain and Universal Declaration of Human Rights (UDHR).
Bahrainis have been staging demonstrations since mid-February 2011, demanding political reform and a constitutional monarchy, a demand that later changed to an outright call for the ouster of the ruling Al Khalifa family following its brutal crackdown on popular protests.
The Manama regime has arrested many rights activists, doctors and nurses since the uprising began.
Bahrainis say they will continue holding anti-regime demonstrations until their demand for the establishment of a democratically-elected government and an end to rights violations is met.