It will be Binance’s first regulatory approval in the Middle East and North Africa region if the Bahrain application is approved.
Binance is ringing in the new year with endorsements from two different parts of the globe.
The Central Bank of Bahrain has awarded the crypto exchange an in-principle licence to operate as a crypto asset service provider in Bahrain. The in-principle permission is a first for a Binance business in the Middle East and North Africa region, according to the release.
Binance CEO Changpend Zhao, often known as “CZ,” said in a statement that regulatory approval is “essential to build trust in crypto and blockchain and help further improve mass adoption.
According to Abdulkarim Haji, director of licencing at the country’s central bank, licencing is “only a matter of procedures.” Bahrain, he said, would be a good site for Binance to locate its regional headquarters.
Binance has received a crypto finance licence in Canada, incorporating as Binance Canada Capital Market, in an unexpected move. The exchange’s new company will manage digital assets, money transfers, foreign exchange, and serve as a money service provider (MSB).
On Twitter, CZ verified the licencing. He expressed his delight at the prospect of expanding the company’s customer care team to include clients and other cryptocurrency exchanges.
The crypto exchange applied for an MSB licence with FINTRAC on Friday, and it was approved on Monday. The existing financial licence for the exchange will expire on December 31, 2024.
Bahrain, the smallest economy in the Gulf, has been a leader in the digital asset market. After getting permission to operate from the country’s central bank in 2019, Rain Financial became the region’s first regulated crypto-asset platform. Bahrain’s monetary authority renewed Manama-based CoinMENA’s licence in January.
Binance’s decision underscores the company’s growing interest in the Middle East. According to Cointelegraph, the company recently became the first crypto exchange to join the new crypto hub established by the Dubai World Trade Centre Authority.
In 2021, Binance’s regulatory voyage has been nothing short of thrilling, as the cryptocurrency exchange continues to grow into new countries and gain regulatory licence. Simultaneously, it has received harsh criticism, warnings, and fines from a number of agencies.
The Financial Crimes Investigation Board recently penalised Binance Turkey $750,000 for failing to meet financial surveillance report criteria.
