The Binance exchange platform has been granted a license by the Central Bank of Bahrain to provide cryptocurrency-related services. It can now operate in the territories of the Gulf Cooperation Council (GCC) states, giving it a prime position in the Middle East.
Binance gets license in Bahrain
Yesterday evening, Binance announced it was strengthening its presence in the Middle East, and for good reason, it has just obtained the first crypto asset service provider license issued by the Central Bank of the Kingdom of Bahrain (CBB).
TeamBahrainBinance has been granted the first license for a global crypto-asset provider in The Cooperation Council for the Arab States of the Gulf (GCC) by the Central Bank of Bahrain. pic.twitter.com/Ndnb4xhA5y
– CZ Binance (@cz_binance) March 14, 2022
After a year of regulatory setbacks in 2021, the famous centralized exchange is placing its pieces one by one to gain global recognition. Its CEO, Changpeng Zhao (CZ), mentions the first step of a long series:
The Bahrain licence is an important step in our journey towards full licensing and regulation worldwide. […] The crypto asset license will allow Binance to provide crypto asset trading, custody and portfolio management services to clients, under the supervision of Bahraini regulators. “
BBC Governor Rasheed Al Maraj, meanwhile, pointed to the regulatory framework adopted by the kingdom, which he described as conducive to innovation for ecosystem players.
A strategic expansion in the Arabian Peninsula
If in the early years of its existence, Binance grew like crazy at the expense of compliance, a new era is beginning. And for good reason, it now prefers to get into the good graces of the various regulators to stay one step ahead of its competitors.
To that end, the platform announced late last year that it would open a cryptocurrency hub in Dubai. The agreement placed Binance in a consulting role, with the aim of making the Emirate a global reference for the cryptocurrency ecosystem.
Moreover, it is worth noting that this manoeuvre has paid off, as the licence is valid not only for Bahrain, but also for Dubai and all the Gulf Cooperation Council (GCC) states: Saudi Arabia, Oman, Kuwait, Bahrain, United Arab Emirates, Qatar.
It is therefore an announcement that confirms the rumours of the last few days when CZ praised the relevance of a new Dubai regulation last Wednesday:
Regulatory clarity is so important. This new virtual asset law in Dubai is a great step forward. https://t.co/qIMFjMiSUv
– CZ Binance (@cz_binance) March 9, 2022
This is a concrete example of the benefits that clear and unambiguous regulation can bring. It helps attract major market players and helps make a country an ambassador for a technology. All of this while giving it the necessary weapons to increase its competitiveness.
