Bahrain’s Central Bank approves Binance’s operation in principle

The world’s largest cryptocurrency exchange by trading volumes, Binance Holdings Ltd., has been granted an in-principle agreement by The Central Bank of Bahrain. The agreement allows Binance to become a crypto-asset service provider in the Kingdom of Bahrain, making CBB the first regulator in the MENA region to grant an entity of Binance such an approval. In applying for a license, the exchange plans to become a centrally regulated cryptocurrency exchange.

The exchange has faced increased scrutiny from regulators in the UK, US, China, and Europe due to its opaque operating structure. However, it has been on the lookout for a new global headquarters while striving to improve its relationship with regulatory authorities. In addition to expanding its presence in the Middle East, Binance is attempting to take advantage of the growing acceptance of cryptocurrencies in the region.

Binance commented, “The in-principle approval from CBB still requires Binance to complete the full application process, which is expected to be completed in due course.” However, Binance’s licensing will be “a matter of formalities” once it completes the establishment requirements, said Abdulla Haji, Director for Licensing at the Central Bank. In his view, setting up its regional headquarters in the kingdom would be a good fit for the exchange.