Binance, reputed as the world’s largest crypto exchange is expected to provide numerous regulated crypto-related services to the Bahraini population.
Binance will deliver fully regulated crypto services to its first country in the Middle East, thanks to a license given by Bahrain’s central bank.
The Cooperation Council for the Arab States of the Gulf was able to grant the license to Bahrain (GCC). Changpeng Zhao, the CEO of the world’s largest exchange, revealed the crypto-asset service provider license on March 14.
Binance’s new license lets it provide crypto services to customers in the Middle East’s smallest economy, including trading, custody, and portfolio management. Binance acquired in-principle authorization to operate in Bahrain in December. That clearance has now been upgraded to a full license.
HE Rasheed Al Maraj, Governor of the Central Bank of Bahrain (CBB), said the bank is “creating laws matched with global trends” to “allow innovation and best practices.”
Binance will be able to continue its worldwide expansion ambitions while adhering to local legislation thanks to the license. CZ indicated last week that he wants Binance to “discover and invest in” traditional firms in every economic sector around the world to tie them to cryptocurrency.
Bahrain has been one of the most crypto-friendly countries in the Middle East, despite its small size in comparison to other countries in the area, or perhaps because of it. In January, the CBB successfully tested JP Morgan’s Onyx crypto payment system.
Obtaining operating licenses in each region would undoubtedly aid Binance in achieving its objectives in this regard. Forbes, a major media publisher, was the company’s most recent notable acquisition, which it made last month for the princely sum of $200 million.
The CBB’s move also places the country ahead of Dubai as a crypto hub in the region. Bahrain’s financial crypto legislation is well ahead of those in Dubai, which still prohibits crypto exchanges from providing services to locals.
Although the central bank now has more advanced crypto laws, Talal Tabbaa, CEO of Bahrain-based crypto exchange CoinMENA, told CNN in February that “if banking was sorted, then Dubai could be the number one destination for crypto,”
The banking crisis in Dubai could be resolved this year, thanks to UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum’s creation of a legal framework for cryptocurrency in the city. The Prime Minister claimed the framework would protect investors and develop “much-needed worldwide norms” for crypto industry regulation.
