Binance’s efforts to become fully regulated may soon be rewarded after the Central Bank of Bahrain (CBB) granted the company in-principle clearance to operate in Bahrain.
CBB is “the first regulator in the Middle East North Africa (MENA) area to award an in-principle clearance to a Binance business,” according to a statement released by Binance on Monday. The exchange must still go through the whole application process after receiving “in-principle permission” from CBB.
CBB’s Director of Licensing, Abdulla Haji, confirmed the plan, stating that license is “only a matter of formality” if Binance completes the establishment requirements. According to Haji, the Kingdom of Bahrain is “the ideal location” for Binance to establish its MENA headquarters.
“Recognition and approval from national regulators, such as the Central Bank of Bahrain, is essential to build trust in crypto and blockchain and help further improve mass adoption,” Changpeng Zhao, Founder, and CEO of Binance.
After receiving CBB clearance in 2019, Rain Financial, a cryptocurrency exchange sponsored by BitMEX and other investors, became Bahrain’s first registered digital asset services provider.
Binance’s announcement also coincides with the company’s transition from a decentralized corporate structure to one with operations focused in a single country.
Following today’s announcement and recent deal in Dubai, the Gulf region is now looking like a top destination.
Binance and the Dubai World Trade Centre Authority (DWTCA) inked a memorandum of understanding last week with the goal of developing a digital assets sector cluster.
Binance’s Regulatory hurdles
Binance and its subsidiaries have had a difficult year, with regulators in the United Kingdom, the Netherlands, Japan, Italy, and a number of other countries issuing warnings about the exchange’s unauthorized operations.
Some jurisdictions even launched enforcement action against Binance for illegal activities.
Binance’s local organization was recently fined approximately $750,000 by Turkey’s Financial Crimes Investigation Board (MASAK) for breaking anti-money laundering guidelines.
The exchange withdrew its application for a license in Singapore earlier this month, adding that it will now turn its operations in Singapore into a “blockchain innovation hub”.