Binance received the first regulatory approval from the Central Bank of Bahrain, a nation based in the Persian Gulf.
Binance has had a complex year full of ups and downs, with rejections from regulatory entities attacking the entity on a global scale. However, things began to improve in the last months of the year, as the entity opened a corporate headquarter in Ireland and acquired an exchange in Singapore.
But there is more. Today Binance Holdings Ltd. highlighted that it received complete authorization from the Bahrain central bank to work as a crypto asset service provider in the country, according to a statement from the firm. Bahrain, also known as Bahrain or Bahrayn, is a country in the Persian Gulf, in the Middle East, made up of 30 small islands, which despite being small and little known, has had a relevant technological development.
Changpeng “CZ” Zhao, CEO of Binance, stated that the company is currently working on the entire application process, adding that the project will get completed soon.
Strong Leadership and Foresight
Zhao expressed that the Central Bank of Bahrain showed strong leadership and foresight in approaching cryptocurrencies as a future asset class. The chairman also expressed a lot of enthusiasm for the support he received from the Central Bank of Bahrain during the process.
Furthermore, Finbold notes that Abdulla Haji, director of licensing at the country’s central bank, highlighted that once Binance gets the necessary prerequisites for training complete, the licensing process will be just a matter of formalities. During his talk, he described the Kingdom of Bahrain as the best place for the exchange to set up its regional headquarters.
The outlet also comments that Bahrain has pioneered sympathy for digital assets. In 2019, Rain Financial Inc. became the region’s first licensed crypto-asset platform, and even received authorization from the Kingdom’s central bank to start operating in the country. This action got followed by CoinMENA, which acquired another license from the Bahraini monetary entities earlier this year.
Binance’s decision demonstrates the company’s increased emphasis on the Middle East. However, various Turkish regulators fined Binance’s local headquarters for not complying with digital currency legislation linked to consumer information.
A Fully Regulated Centralized Cryptocurrency Exchange
Binance highlighted that they received total approval from the Central Bank of Bahrain (CBB) to establish itself as a crypto asset service provider in the Kingdom of Bahrain. The agreement came to the public light after Binance applied for a license from the CBB as part of its strategies to become a fully regulated centralized cryptocurrency exchange.
CBB’s move positions it as the first regulator in the Middle East and North Africa to give approval in principle to a Binance entity. CBB’s approval in principle still requires Binance to complete the entire application process, which intends to meet its completion in due course.
By: Jenson Nuñez
