Binance Receives First Middle Eastern Crypto License in Bahrain

Key Insights:

• Binance Holdings has received a crypto-asset license from Bahrain’s central bank.
• The exchange will provide services including crypto-asset trading, custodial, and portfolio management.
• Binance has already suffered multiple regulatory clampdowns worldwide.

Binance — the world’s top cryptocurrency exchange — has acquired Bahrain’s central bank license, marking its first crypto license in the Gulf.

First Crypto License in the Middle East

On Tuesday, the exchange said that the crypto-asset license would permit the exchange to offer trading, custodial services, and portfolio management.

Binance will provide these services to customers under the supervision of the Bahrain regulators, the announcement read.

#TeamBahrain.#Binance 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

Changpeng Zhao (CZ), founder and CEO of Binance, said,

“The license from Bahrain is a milestone in our journey to being fully licensed and regulated around the world.”

He also noted that the regulatory requirements will protect customers using “strong anti-money laundering and counter-terrorism financing policies.”

The Central Bank of Bahrain (CBB) has also issued comprehensive regulations to govern and license ‘Regulated crypto-asset services.’ It is a step that is in line with its goal to become the region’s leading FinTech hub.

Rasheed Al Maraj, Governor of the Central Bank of Bahrain added to the same saying,

“Developing regulations aligned with global trends is a key objective for us at the CBB”

Last December, Binance received principle approval from the Central Bank of Bahrain to operate as a crypto-asset service provider in the kingdom.

Additionally, Binance is also targeting Dubai for a crypto license. The exchange is in talks with Dubai World Trade Centre on the same.

Binance Booted in the UK, Ousted From Ontario, and Jabbed in Japan

Binance exchange has been subject to various regulatory scrutiny across the globe. The platform faced multiple rejections from financial regulators, including the UK, Ontario, and Japan.

The UK’s Financial Services Agency (FSA) has outright banned Binance from offering regulated services in the country. FSA said that the exchange holds no registration, license, or authorization in the country.

Meanwhile, Ontario pressurized Binance with a securities trading ban. In January, the Ontario Securities Commission (OSC) stated that Ontario users are not permitted to trade and are prohibited from opening new accounts.

OSC stated that it is “unacceptable” as the exchange has issued notice to its Ontario users without notification to the regulators.

 The exchange also witnessed regulatory troubles from Japan and Italy for operating and providing services unauthorized in the respective countries.