TL; DR Breakdown
- Binance awarded a temporary license in Bahrain
- The exchange needs to complete verification to gain a full license
- The company continues to face regulatory woes
In the past few months prior to this time, Binance had been mulling the idea of a regulatory license of operations across different countries. This is because most regulators worldwide were looking into the exchange while leveling accusations against them. A regulator pointed out that the company was beyond regulation because it had failed to submit the necessary documents to undergo the process. However, Binance‘s drive for a license of operation may already be in the works after the crypto exchange was granted a temporary license to carry out its operations inside Bahrain.
Binance needs to complete verification to gain a full license
A statement by the crypto exchange announcing the temporary license noted that the Central bank of the North Africa country was the first to grant it a license across the region. Although it has been granted a temporary license, the Central Bank of Bahrain has still mandated Binance to undergo the complete requirements to gain full and permanent approval.
Going by the statement of one of the top executives of the financial institution, Binance gaining a permanent license is a matter of when and not if. In his statement that Bloomberg quoted, he mentioned that the crypto exchange must go through the much-needed formalities.
The exchange continues to face regulatory woes
In his statement, the executive, Abdulla Haji mentioned that Binance choosing to set up a licensed base of operation in the country was a good move for them. Taking to Twitter, the CEO of Binance Changpeng Zhao announced the update in a recent tweet this morning. In his statement, the new license will help them actualize their long dream of pushing crypto adoption deeper.
Bahrain has been awarding licenses of operations to companies since 2019 after BitMEX backed entity Rain Financial got its license in the country. This recent announcement has also put paid to the dreams of the exchange being a decentralized entity without a functional headquarter.
Before today’s announcement, all was looking set for Binance to jump at any opportunity to set up shop in Dubai after being one of the partners of the Dubai crypto hub initiative. Like previously mentioned, the company has been in the news over this year for not-so-good reasons. Asides from many regulators warning investors against them, others looked set to enforce actions against them for illegal activities. A recent example was Binance’s base in Turkey fined about $750,000 for going against anti-money laundering laws.