Binance is entering into new year with two positive developments related to its aim to become a fully-regulated centralized cryptocurrency exchange. Binance gets in-Principle approval in Bahrain to operate as a crypto-asset service provider, and obtains a crypto financing license in Canada.
Bahrain Awards in-Principle Approval To Binance
Binance, a leading blockchain and cryptocurrency infrastructure provider, receives in-principle approval from the Central Bank of Bahrain (CBB) to establish itself as a crypto-asset service provider in the Kingdom of Bahrain.
The in-principle approval comes after Binance applied for a license from the CBB as part of its plans to become a fully-regulated centralised cryptocurrency exchange.
The move from CBB makes it the first regulator in the Middle East North Africa (MENA) region to grant an in-principle approval to a Binance entity. The in-principle approval from CBB still requires Binance to complete the full application process, which is expected to be completed in due course.
Changpeng Zhao (CZ), founder and CEO of Binance, said:
“Recognition and approval from national regulators, such as the Central Bank of Bahrain, is essential to build trust in crypto and blockchain and help further improve mass adoption. The CBB has been a progressive pioneer in developing a robust crypto-asset framework focusing on compliance with global standards of anti-money laundering, counter-terrorism financing, transaction monitoring, consumer protection amongst others. It sets a benchmark bridging traditional financial systems and the crypto industry to facilitate safe adoption and deployment.”
“The Central Bank of Bahrain has demonstrated leadership and forethought in addressing crypto as a future asset class. I am grateful for the support from the Central Bank of Bahrain and the broader Bahrani ecosystem during the process. The approval recognizes Binance’s commitment to comply fully with regulatory requirements and our broader commitment to anchor operations and activities in Bahrain.”
The Bahrain development demonstrates Binance’s strong commitment to the Middle East and North Africa region. Earlier in December, Binance announced the signing of a cooperation agreement between Binance and the Dubai World Trade Centre to help advance Dubai’s commitment to establishing a new international Virtual Asset ecosystem that will generate long-term economic growth through digital innovation.
Binance Gets A Crypto Financing License In Canada
Binance has also obtained a crypto financing license in Canada, incorporated as Binance Canada Capital Market.
The new license will allow its subsidiary to function as a money service business (MSB) dealing in foreign exchange, money transfers, and virtual currencies.
CZ took to twitter to annouce the news. He said the company is excited to expand its customer support team to include customers and other crypto exchanges.
The crypto exchange applied FINTRAC for an MSB license on Friday, which got approved on Monday. The exchange’s current financial license will expire on Dec. 31, 2024.
Why Does It Matter?
Binance has been facing a lot of trouble on regulatory front and received warnings from many countries in 2021. It had to even cease its operations also in many countries due to not having required license to operate. Most recently, Binance Turkey was fined $750,000 by the Financial Crimes Investigation Board for failing to meet financial surveillance reports requirements.
Earlier this year, the exchange decided to cooperate with courtiers and obtain all the required regulatory approval before operating in a particular country. After a lot of criticisms and warnings, the new developments are really a good beginning for Binance. This will not only help Binance in expanding to more markets, but it also pave the way for crypto adoption in these markets.