Bahraini nationals will now have access to a variety of regulated crypto services provided by the world’s largest crypto exchange.
Thanks to a licence given by Bahrain’s central bank, cryptocurrency exchange Binance will deliver fully regulated services to its first country in the Middle East.
The Cooperation Council for Arab States of the Gulf was able to grant the licence to Bahrain (GCC). Changpeng Zhao, the CEO of the world’s largest exchange, revealed the crypto-asset service provider licence on March 14.
#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
Binance’s new licence lets it to provide crypto services to customers in the Middle East’s smallest economy, including trading, custody, and portfolio management. Binance acquired in-principle authorisation to operate in Bahrain in December. That clearance has now been upgraded to a full licence.
HE Rasheed Al Maraj, governor of the Central Bank of Bahrain (CBB), said the bank is “creating laws matched with global trends” to “allow innovation and best practises.”
Binance will be able to continue its worldwide expansion ambitions while adhering to local legislation thanks to the licence. CZ indicated last week that he wants Binance to “discover and invest in” traditional firms in every economic sector around the world in order to tie them to cryptocurrency.
Bahrain has been one of the most crypto-friendly countries in the Middle East, despite its small size in comparison to other countries in the area, or perhaps because of it. In January, the CBB successfully tested JP Morgan’s Onyx crypto payment system.
The CBB will be able to address “current inefficiencies in the traditional cross-border payments business” by employing crypto-based payment methods, according to governor Al Maraj.
Obtaining operating licences in each region would undoubtedly aid Binance in achieving its objectives in this regard. Forbes, a major media publisher, was the company’s most recent notable acquisition, which it made last month for the princely sum of $200 million.
The CBB’s move also places the country ahead of Dubai as a crypto hub in the region. Bahrain’s financial crypto legislation are well ahead of those in Dubai, which still prohibits crypto exchanges from providing services to locals.
Although the central bank now has more advanced crypto laws, Talal Tabbaa, CEO of Bahrain-based crypto exchange CoinMENA, told CNN in February that “if banking was sorted, then Dubai could be the number one destination for crypto,”
The banking crisis in Dubai could be resolved this year, thanks to UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum’s creation of a legal framework for cryptocurrency in the city. The framework, according to the Prime Minister, will protect investors and create “much-needed international norms” for crypto industry governance.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
