An experienced writer with practical experience in the fintech industry. When not writing, he spends his time reading, researching or teaching.
The license underscores Binance’s desire to comply with local regulations while operating globally.
Leading cryptocurrency exchange Binance has announced the receipt of a crypto license from Bahrain. The license, issued by the Central Bank of Bahrain on March 14, is the first such license in The Cooperation Council for the Arab States of the Gulf (GCC).
Before now, Bahrain gave Binance an ‘in-principle approval’ in December, mandating them to complete full application before being granted a license. Now, the company has obtained a full-fledged license that allows it to provide trading, custody, and portfolio management for customers.
Commenting about the development, Changpeng Zhao (CZ), founder and CEO of Binance, commended the Binance team for meeting the demands of the Central Bank of Bahrain.
Crypto License an Important Milestone
The license underscores Binance’s desire to comply with local regulations while operating globally. Recall that in 2021, Binance faced a regulatory onslaught across many countries, including China, the United Kingdom, and the United States. In response, CZ has always announced that Binance would do everything in its power to remain regulatory compliant.
Last week, CZ announced Binance was looking for traditional businesses in every economic sector to invest in and bring into the cryptocurrency market. The company also invested $200 million in Forbes to boost consumer knowledge about cryptocurrencies.
CZ noted that the license from Bahrain is a milestone in the journey to being fully licensed and regulated globally. Thanking Team Bahrain, CZ said, “Team Bahrain has shown considerable foresight in its development of crypto regulations and provides the regulatory protections that consumers should come to expect from regulators around the world.”
Bahrain has always been a crypto-forward nation, with infrastructure to support the blockchain and crypto industry, with varying regulations and diverse talent spread across financial services, technology, and fintech sectors. In January, the CBB completed a digital payment test using Onyx. By issuing a license to Binance, the oil-rich nation effectively puts itself ahead of Dubai and other Middle East countries.
Also, the crypto license demonstrates the nation’s willingness and readiness to establish itself as a leading business hub globally. Khalid Humaidan, CEO of the Bahrain Economic Development Board (EDB) noted as much when he said, “Collaboration with industry leaders such as Binance will further enhance our mission to establish the Kingdom of Bahrain as a leading business hub.”
Binance is said to also be in advanced talks for a Dubai license as it continues its push for adoption in the Middle East.