Even though it is only a small Gulf country, Bahrain is a true avant-garde in cryptocurrency technology in the Middle East. In that territory, Binance Holdings LTD has obtained authorization from the central bank to provide its services, according to a statement from the company.
Bahrain is open to the development of cryptocurrencies
Changpeng Zhao (CZ), CEO of Binance said that “the Central Bank of Bahrain has shown leadership and foresight in approaching cryptocurrency as a future asset class. I am grateful for the support from the Central Bank of Bahrain. The approval recognizes Binance’s commitment to fully comply with regulatory requirements and our broader commitment to anchor operations and activities in Bahrain.He plans to make Bahrain the headquarters of his company.
For his part, Abdulla Haji, director of licenses at the country’s central bank, revealed that once Binance fulfills all the requirements for its incorporation, the licensing process will become “just a matter of formalities“.
Bahrain was a pioneer in the use of digital assets. Indeed, in 2019, Rain Financial Inc. became the first authorized cryptocurrency platform in the region. For this, it first received the approval of the central bank of the Kingdom. It was closely followed by CoinMENA which also obtained an authorization, but this time at the beginning of the year.
The Middle East and cryptocurrencies
Binance is clearly considering develop its activities to reach new regions, including the Middle East. In the past, company officials have met with authorities in the United Arab Emirates to discuss the possibility of establishing a head office in the country. These discussions have been fruitful. Indeed, over the past week, Binance has revealed that it has reached an agreement with the Dubai World Trade Center authority to help regulate digital assets.
It should be noted, however, that the Middle East region is not entirely in agreement with the use of cryptocurrencies, at least when this use is not done in accordance with the laws of the country. For example, Turkish authorities recently fined Binance for failing to comply with digital currency laws relating to consumer information.
In addition, another stock exchange called BN Teknoloji was also amended to the tune of 750,000 dollars due to an investigation into financial crimes.
Binance is opening up to new horizons. Thanks to its collaboration with authorities in the Middle East, it plans to create a head office there that will cover the entire region.
Source: Finbold
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