© Reuters
Investing.com – The cryptocurrency exchange has received an agreement in principle from the Central Bank of Bahrain to operate as a service provider of crypto assets in the Kingdom. According to the announcement, the approval in principle is a first for a Binance entity in the Middle East and North Africa region.
In a statement, the CEO of Binance CZ said approval from national regulators is “key to building confidence in crypto and blockchain and helping to further improve mass adoption.”
When it comes to obtaining a license, it is “a matter of formalities”, according to Abdulkarim Haji, director of licenses at the country’s central bank. He pointed out that Bahrain was the perfect place for Binance to establish its headquarters in the region.
Bahrain as a regional crypto hub
Bahrain, the Gulf’s smallest economy, has been a pioneer in the digital asset sector. Rain Financial became the region’s first licensed crypto-asset platform after receiving permission from the country’s central bank to operate in 2019. In January, Bahrain’s Monetary Authority renewed a license for CoinMENA, based in Manama.
Binance’s move reflects the firm’s increased focus on the Middle East region. The company recently became the first crypto exchange to join a new crypto hub established by the authority of the Dubai World Trade Center.
Binance is expanding across multiple countries
Additionally, Binance has obtained a cryptofinancing license in Canada, under the name Binance Canada Capital Market. The exchange’s new affiliate will handle digital assets, money transfers, foreign exchange, and operate as a money services business (MSB).
CZ confirmed the grant of the license on Twitter (NYSE :). He said they are excited to expand their customer support team to include customers and other crypto exchanges.
On December 24, the crypto exchange applied to FINTRAC for an MSB license, approved on December 27. The exchange’s current financial license will expire on December 31, 2024.
Often difficult development
Binance’s regulatory odyssey has been nothing short of thrilling in 2021, as the cryptocurrency exchange continues to expand into new countries and gain the appropriate regulatory approval. At the same time, she faced serious criticism, warnings and fines from several authorities.
Most recently, Binance Turkey was fined $ 750,000 by the Financial Crimes Investigation Board (MASAK) for failing to comply with financial monitoring reporting requirements.
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