TL;DR Breakdown
- The Central Bank of Bahrain has given Binance a license that allows it to operate in the country.
- The exchange can now offer crypto trading, custodial, and portfolio management services to the users.
The Central Bank of Bahrain has granted Binance the license that will allow it to offer crypto trading, custodial, and portfolio management services. This is a significant step forward for the exchange as it looks to expand its reach into the Middle East and global dominance.
Binance acquisition in the Middle East
Binance is the first crypto exchange in the Middle East and North Africa (MENA) region to obtain a license. The Bahrain Economic Development Board (EDB) has been instrumental in supporting the crypto exchange’s expansion into the country. The crypto exchange was granted preliminary approval for a license in December, but it had to complete the full application procedure before receiving the whole license.
The license gives Binance the green light to offer its services to both institutional and retail investors in Bahrain. This is a major development as it will allow the company to tap into a new market that is hungry for cryptocurrency investment opportunities.
The company is no stranger to seeking out new frontiers. The company has been on an expansion spree in recent years and has set up operations in a number of jurisdictions around the world. This latest move into Bahrain is part of its larger strategy to become a global player in the cryptocurrency space.
The company’s CEO, Changpeng Zhao, was quoted as saying: “We are proud to receive the Digital Asset Business License from the Central Bank of Bahrain. This is a validation of our commitment to the region and our dedication to serving our users in a compliant and regulated manner.”He added: “The Middle East and North Africa region is an important market for us at Binance, and we are excited to continue our expansion into the region with a focus on providing the best possible experience for our users.”
Meanwhile, Binance has been aggressively expanding its operations across the world. On Monday, the firm announced that it had signed a memorandum of understanding to acquire Brazilian securities brokerage company Sim; paul InvestimentosBinance stated that the company is authorized by Brazil’s central bank and the securities market authority, which means it has met standards set forth in the regulation.
The exchange is approved by Brazil’s central bank and the securities market regulator, meaning it has satisfied requirements set out in law. Binance has agreed to buy a leading cryptocurrency exchange in Brazil, the country’s first major foray into regulated crypto trading. The deal, which will require regulatory approval, is intended to help Binance expand its operations in the South American nation.
However, Binance is currently faced with regulatory hurdles as it tries to expand its services across the world. Recently it was reported that Bifinity, a Binance owned payment, has faced regulations from Financial Conduct Authority (FCA), which might obstruct the new company’s operations, especially in the UK, citing previous regulatory concerns with the crypto exchange.
However, the oil-rich Kingdom of Bahrain appears to have a more favorable attitude toward Binance and considers the license as a positive development for its fledgling crypto sector. “Team Bahrain has created a world-class infrastructure to support the fast-growing blockchain and cryptocurrency sector, with robust regulations,” says Khalid Humaidan, CEO of the Bahrain Economic Development Board. He added that their ultimate goal is to establish the Kingdom of Bahrain as a leading business center, and collaboration with industry leaders such as Binance will help them achieve this ambition.
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