Binance, the world’s largest trading volume bitcoin (BTC) and cryptocurrency exchange, received approval to operate as a crypto asset service provider from the Central Bank of Bahrain, an island nation in the Persian Gulf.
This confirms the company’s interest in enter the regulatory framework of several countries to “become a fully regulated centralized cryptocurrency exchange.” This was announced by the company in a release, today, December 27.
According to the document, the authorities of Bahrain are the first regulator in the Middle East and North Africa region (MONA) in granting early stage approval to an entity like Binance.
However, not everything is defined for the company in Bahrain. Now you must wait for the application process to complete. In the statement they did not specify how long they must wait for final approval.
The Middle East region has become of importance to Binance. On December 21, the company also signed an agreement with the Dubai World Trade Center Authority (DWTCA) to “outline the vision of accelerating the configuration of a new industrial hub for Global Virtual Assets.”
Binance also bows to regulations in Canada
Another country where Binance got approval from regulatory bodies was Canada.
In that nation, the company Registration a Binance Canada Capital Market para handle digital assets, money transfers and currency exchange. It will also function as a money services business (MSB).
The request was made last Friday and received the go-ahead today, December 27. The license expires in 2024.
Recently, Changpeng Zhao, CEO of Binance, spoke in an interview about the regulations. In the dialogue, which was reviewed by CriptoNoticias, the businessman indicated that “unfortunately,” the company is “the biggest player in the cryptocurrency space.” For that reason, he said, “when regulators get involved, they look at Binance first.”
Zhao acknowledges that there are benefits to it anyway: “It wasn’t that bad, as we helped shake up regulations in the process. We shake them off, given that Binance has 70% of the global trading volume, followed by Coinbase, which has 8%.
Binance operated since 2017 globally without centralized offices nor licenses from regulators, but now everything has changed due to the pressure it has received from several countries such as the United Kingdom, Italy or Chile.
Just as the exchange has had to adjust to the regulations, the same will happen with its users. That means that they are obliged to provide their personal data to operate; or send information along with your money transfers, for example using the travel rule.