Binance announced on Monday that it has received in-principal approval from the Central Bank of Bahrain (CBB) to operate as a crypto-asset service provider in the Kingdom of Bahrain.
The exchange now has to complete its full application process with the Bahrain regulator, which it is expecting to complete in the ‘due course’.
“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,” said the Binance Co-Founder and CEO, Changpeng Zhao.
“The CBB has been a progressive pioneer in developing a robust crypto-asset framework focusing on compliance with global standards of anti-money laundering, counter-terrorism financing, transaction monitoring, consumer protection amongst others. It sets a benchmark bridging traditional financial systems and the crypto industry to facilitate safe adoption and deployment.”
This was the first regulatory approval gained by Binance in the Middle East and North Africa (MENA) region and indicates the willingness of the exchange to make Bahrain its operational hub in the region.
Push to Become Regulated
In addition, the licensing came when the global exchange is pushing to make its operations regulated across jurisdictions. Moreover, the exchange is looking for a global base to move away from its decentralized operations structure.
Binance has faced dozens of regulatory warnings in the past several months for being operational as an unauthorized platform in most jurisdictions. Most recently, a Turkish regulatory fined the local unit of the exchange nearly $750,000 for anti-money laundering rules violations.
“The approval recognizes Binance’s commitment to comply fully with regulatory requirements and our broader commitment to anchor operations and activities in Bahrain,” Zhao, who is Binance’s poster boy, added.
Meanwhile, the exchange withdrew its application for a license in Singapore and is wrapping up its services in the city-state.
