The Central Bank of Bahrain (CBB) has given the in-principle approval to Binance to become a crypto-service provider in the kingdom. Binance had applied for a license to establish itself as a fully-regulated centralized cryptocurrency exchange in Bahrain.
As such, the CBB is the first regulator in the Middle East North Africa (MENA) region to grant an in-principle approval. Changpeng Zhao, the Binance co-founder, believes recognition and approval from national regulators are essential to building trust in crypto and blockchain. He said this is help improve mass adoption.
Zhao added that the greenlight recognizes Binance’s commitment to comply with regulatory requirements and the exchange’s broader commitment to getting a foothold in Bahrain.
Binance applauded the CBB as a progressive pioneer in developing a robust crypto-asset framework. It focuses on compliance with global standards of anti-money laundering, counter-terrorism financing, consumer protection, and transaction monitoring, etc. The crypto exchange firm says the CBB has set a benchmark that bridges traditional financial systems and the crypto industry. This in turn brings about safe adoption and uses.
Analysts have been closely watching MENA leapfrogging in digital innovation and emerging technologies. And it is also leading in recognizing and adopting cryptocurrencies and blockchain. The MENA governments have acknowledged the fact that digital transformation via blockchain technology and digital assets are the driving force in the new age.
Furthermore, the governments have provided guardrails and testbeds for fintech companies to grow and evolve. It should be noted that the CBB’s Fintech and Innovation Unit provides authorization and encourages growth and progress in the industry.