In March, Binance obtained a full license to operate crypto services including trading, custody, and portfolio management in Bahrain.
Binance has announced that its Bahrain operation would be upgraded with more crypto services after acquiring the category 4 license. This makes it the first crypto service provider to obtain a full category 4 license in the country. In March, Binance obtained a full license to operate crypto services including trading, custody, and portfolio management in Bahrain.
According to Binance CEO Changpeng Zhao, this is a step toward their vision of being fully regulated and acquiring licenses around the world. Its initial attempt was in December when it was given preliminary approval for the license, but was demanded to go through the complete application process to get a full license for its operation. The category 4 license is a huge milestone for the exchange as it seeks to increase global financial freedom.
“The upgrade to a Category 4 license in the Kingdom of Bahrain is a landmark achievement for Binance and further signifies our commitment to being a compliance-first exchange,” Richard Teng, Head of MENA at Binance.
This move is also expected to make way for Bahrain to become the leading crypto hub in the Middle East. Binance has been stepping up its efforts in the region as it also obtained a limited license to operate in Dubai in March. In April, it obtained provisional approval to operate as a broker in Abu Dhabi.
Khalid Humaidan, CEO of the Bahrain Economic Development Board, has lauded the collaboration with Binance as it could play a huge role in its effort to become a leading business hub.
“Team Bahrain has built a world-class infrastructure to support the fast-growing blockchain and crypto industry, with robust regulations. … Collaboration with industry leaders such as Binance will further enhance our mission to establish the Kingdom of Bahrain as a leading business hub,” he said.
In 2021, Binance faced one of the toughest years after regulators from various countries published warnings and opened investigations against the exchange. The Financial Conduct Authority in the UK warned that Binance Markets Limited was not licensed to operate in the country. The Financial Services Agency of Japan as well as the financial authorities in Cayman island also published that the exchange was not authorized to operate in their jurisdiction.
In addition, The Securities and Exchange Commission of Thailand filed a criminal complaint against the exchange and even withdrew from the Canadian province of Ontario after authorities announced that some exchanges were operating without complying with local regulations. In response, the exchange hired several former regulators to join the compliance and executive team. Changpeng Zhao stated that the exchange is committed to being compliant with regulations to not create problems in their operation.
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