Leading crypto exchange Binance would now be able to offer its service in Bahrain and Dubai. As per sources, the world’s largest digital-asset platform was granted a license from the Central Bank of Bahrain [CBB], to set up shop in the region, increasing its footprint in the Middle East. The news assumes significance as it is Binance’s first such regulatory approval in the Gulf area.
The permit will enable the crypto firm to provide digit-asset trading, custodial services, and portfolio management to customers under the supervision of the Bahrain regulators. As per a Bloomberg report, the cryptocurrency exchange also obtained a license to be the first anchor in Dubai World Trade Centre, an economic free zone. Speaking on the same, CEO Changpeng Zhao a.k.a CZ stated,
“This landmark achievement for Binance represents our first license as a crypto-asset provider in The Cooperation Council for the Arab States of the Gulf [GCC] and demonstrates our commitment to being in regulatory compliance as the first of its group of companies in the region.”
Binance eyeing opportunities in non-crypto industries
In a back-to-back development, the global crypto exchange signed a Memorandum of Understanding [MoU] on 14 March seeking to explore the acquisition of Brazilian securities brokerage Sim;paul Investimentos. According to the company’s website, Sim;paul founded by João Silveira in 2019 is a securities brokerage firm regulated by both the Central Bank of Brazil and the Securities and Exchange Commission [CVM].
As stated in the press release, the move is intended to further develop the cryptocurrency and blockchain ecosystem in Brazil. On establishing the formal agreement, CZ noted,
“In a fast-developing market like Brazil, crypto can transform and facilitate people’s lives and as such, we believe in full collaboration with local authorities that Binance has a lot to contribute in developing the community and ecosystem in Brazil.”
Having said that, completion of the transaction would require a green signal from the administrative authorities, including the Central Bank of Brazil. Previously in August, Binance had to halt trading of crypto derivatives products such as futures contracts on its Brazilian platform to comply with local regulations.