Binance Strengthens Foothold in Middle East With Bahrain’s Crypto Asset Service License

The world’s largest cryptocurrency exchange, Binance, has been awarded a crypto-asset service provider license from the Central Bank of Bahrain (CBB).

As the company continues to face increased scrutiny from financial watchdogs elsewhere, CEO CZ stated that this license is a milestone in the platform’s “journey to being fully licensed and regulated around the world.”

Binance First License in the Middle East

In a press release shared with CryptoPotato, Binance stated that Bahrain had become the first country in the Middle East where the exchange will provide fully regulated services after the issuance through the Cooperation Council for the Arab States of the Gulf (GCC).

The license in question will enable Binance to offer services such as crypto-asset trading, custodial services, and portfolio management to users under the supervision of the Bahrain regulators.

The latest news comes four months after the CBB granted in-principle approval to Binance.

#Binance Wins First Gulf Crypto License From Bahrainhttps://t.co/vlYepjVHy9

— CZ ? Binance (@cz_binance) March 14, 2022

Commenting on the development, CZ said,

“I’m proud of the hard work of the Binance team to meet the stringent criteria of the Central Bank of Bahrain, not just locally but globally by ensuring that we meet and exceed the requirements of regulators and protect users with strong anti-money laundering and counter-terrorism financing policies”

HE Rasheed Al Maraj, Governor of CBB, underscored the key objective of “developing regulations aligned with global trends.” He added that the central bank will continue to work together with players such as Binance to develop regulations that facilitate innovation and best practices.

Financial regulators across the world have targeted Binance. However, Khalid Humaidan, CEO of the Bahrain Economic Development Board (EDB), believes the collaboration with the major cryptocurrency exchange will further advance the investment promotion agency’s mission to establish the Kingdom of Bahrain as a leading business hub.

The Expansion

The mounting regulatory pressure has had little effect on Binance’s expansion plans. To further boost its presence in the Middle East, the exchange was reportedly in talks of obtaining an operational license in Dubai.

Binance also made a comeback in Malaysia after an equity investment in MX Global, a regulated digital asset trading platform. Besides, the crypto giant was also eyeing an expansion to countries like Russia, Ukraine, Kazakhstan, and Uzbekistan. This came after the Russian President’s comment that the digital asset mining industry could benefit the country.