Binance is in principle licensed as a crypto-asset service provider in Bahrain.
Crypto exchange Binance has obtained a master license from the Central Bank of Bahrain to operate as a crypto asset service provider in the Kingdom of Bahrain. According to the announcement, the approval in principle is the first for a Binance entity in the Middle East and North Africa region.
In a statement, Binance CEO Changpend Zhao, or “CZ,” said approval from national regulators “is critical to building trust in crypto and blockchain and helping to further increase mass adoption.”
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When it comes to licensing, it’s “a matter of formality”, according to Abdulkarim Haji, director of licensing at the country’s central bank. He pointed out that Bahrain was an ideal location for Binance to set up its headquarters in the region.
In a surprising move, Binance also obtained a crypto funding license in Canada, which was founded as Binance Canada Capital Markets. The new subsidiary of the exchange will manage digital assets, money transfers, foreign exchange transactions and operate as a money services business (MSB).
CZ confirmed the license on Twitter. He said the company is excited to expand its customer support team to include customers and other crypto exchanges.
Last Friday, the crypto exchange applied to FINTRAC for an MSB license and it was approved on Monday (12/27). The current financial exchange license will expire on December 31, 2024.
Bahrain, the smallest economy in the Gulf, has been a pioneer in the digital asset sector. Rain Financial became the first licensed crypto asset platform in the region after receiving permission from the country’s central bank to operate in 2019. In January, Bahrain’s Monetary Authority renewed the license of CoinMENA, based in Manama.
Binance’s move reflects the company’s increased focus on the Middle East region. The company recently became the first crypto exchange to join a new crypto center set up by the Dubai World Trade Center Authority.
Binance’s regulatory odyssey is no less exciting in 2021 due to the exchange cryptocurrency continue to expand into new countries and obtain appropriate regulatory approvals. At the same time, it has been the subject of serious criticism, warnings and fines from several authorities.
Recently, the Turkish company Binance was fined $750,000 by the Financial Crimes Investigation Commission for failing to meet the requirements of the financial monitoring report.
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