The largest cryptocurrency exchange in the world, Binance has been given a provisional license for crypto-assets by the central bank of Bahrain. This is the first license in the Gulf Cooperation Council for Binance, the bank and the company reported on Tuesday.
The Bahrain license is an important milestone in our journey towards a full license and is regulated all around. The CEO of Binance Changpeng Zhao said in a statement with officials from Bahrain.
The regulatory requirements will give sufficient protection to users and will support robust anti-laundering and will counter finance of terrorism policies.
Binance has been the target of financial regulators around the world. The platform has been banned from participating in certain activities and other nations cautioning clients that it had not been allowed to operate under their jurisdictions.
The license given by the central bank of Bahrain will permit them to participate in custodial services, portfolio management, and trading in crypto assets.
They are also strengthening their presence in the Gulf with a tie-up with the United Arab Emirates.
They reported in December that it was tying up with the World Trade Center in Dubai (DWTC) to enable the setting up an international ecosystem of virtual assets and also assist in the development of regulations for virtual assets.
Dubai, which is one of the 7 emirates under the UAE have adopted laws that govern virtual assets last week. It also established a regulator that would oversee this sector.
The license issued by Bahrain will allow Binance to go ahead with its expansion efforts cutting across global boundaries even as it complies with local laws and regulations.
Binance Tries To Establish A Worldwide Footprint
The Governor of the Central Bank in Bahrain said that they were developing regulations that were aligned with global trends that would enable best practices and innovation.
Binance could achieve its stated goal of a worldwide footprint through a landing license allowing it to operate in every region. It recently acquired Forbes, the media publisher, for a sum of $200M.
But Dubai remains the prime target for Binance as it could transform into the top crypto destination for the company. Their banking issues are expected to be fixed in 2021, as the crown prince of the UAE, PM Rashid Al Maktoum creates a legal structure in Dubai for crypto.
