Barely three weeks after withdrawing its regulatory application in Singapore, prominent crypto exchange Binance is reportedly in agreement with another Asian country Bahrain to use it as a base of operations. According to reports, the exchange has agreed in principle with the country’s top regulator to become a regulated blockchain firm.
Binance set out to look for another country to run its operations after its surprise application of license withdrawal in December. Although it didn’t state why it was shutting down operations, Binance disclosed that it will focus its operations on developing blockchain technology in the country. Choosing Bahrain surmised the platform’s quest to remain in the Asian continent.
Bahrain Agrees In Principle With Binance
Earlier today, Binance announced that Bahrain’s top bank became the first within the jurisdiction to agree in principle with the crypto firm. This implies that the company is close to operating as a fully regulated entity soon.
Director of Bahrain’s Central Bank Licensing Abdulla Haji, confirmed the approval, adding that Binance is close to fulfilling all the requirements for licensing and set up. According to him, Bahrain is in line with Binance’s vision. Therefore, the most ideal location in the region for the company to set up its headquarters.
Binance Chief Changpeng Zhao, stated that getting approval from a reputable regulator such as the CBB, speaks volumes in terms of building a foundation of trust in the blockchain space to facilitate adoption. He made this known while announcing the in-principle approval on his Twitter page, as the platform is set to abandon its decentralized corporate model to function as one entity with operations centered in one location. This instance Bahrain.
Binance isn’t the first crypto platform to receive regulatory approval from the CBB. In 2019, the CBB gave operating license to Rain Financial, as it became the first regulated crypto company to offer blockchain services in the country. Following Binance’s announcement, it’s looking as though the MENA region will become a top destination for cryptocurrency operations.
Binance Has Had a Tough 2021
The crypto firm has been through a lot in 2021 across several countries of the world including Japan, UK, The Netherlands, Singapore, etc. These jurisdictions and more have issued warnings to the exchange over their unlicensed operations.
Some countries even went ahead to launch an enforcement action against the platform. Recently, Turkey fined Binance $755k for allegedly violating AML laws.
Despite the hurdles, Binance has achieved some impressive milestones this year. For instance, the firm signed an agreement with the Dubai World Trade Center Authority to establish an industrial hub based on cryptocurrency. Surprisingly, it is also the most traded exchange platform in the world.