Due to a licence given by Bahrain’s central bank, Binance, the world’s largest cryptocurrency exchange, will deliver fully regulated services to its first Middle Eastern market. Bahrain was able to obtain the licence thanks to the Cooperation Council for Arab States in the Gulf (GCC). Binance CEO Changpeng Zhao (CZ) updated the crypto-asset service provider licence on March 14. The new licence will allow the exchange to provide crypto services to consumers in the Middle East’s smallest economy, which includes trading, custody, and portfolio management. In December, Binance gained a preliminary licence to operate in Bahrain. That clearance has now been upgraded to a full-fledged licence.
#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
Rasheed Al Maraj, governor of the Central Bank of Bahrain (CBB), stated that the bank is creating laws linked to global trends that allow innovation and best practices. Thanks to the license, Binance will be able to continue its worldwide expansion ambitions while adhering to local legislation. Last week, CZ indicated that he wants Binance to find and invest in traditional firms in every economic area throughout the world with the explicit goal of linking them into cryptocurrency.
Bahrain has been one of the most crypto-friendly governments in the Middle East, despite or perhaps because of its small size in comparison to other countries in the area. In January, the CBB successfully tested JP Morgan‘s crypto payment system, Onyx. It was reported on January 10 that CBB will use crypto-based payment methods to address what governor Al Maraj described as existing inefficiencies in the traditional cross-border payments market. Obtaining permits to operate in each location would undoubtedly aid Binance in meeting its objectives in this regard.