On Thursday, Binance announced that it had received a Category 4 License as a crypto assets service provider (CASP) from the Central bank of Bahrain.
“Binance is extremely proud to announce that Binance Bahrain received a category 4 license as a Crypto Asset Provider (CASP) from the Central Bank of Bahrain (CBB) on May 24, 2022.” Read the announcement.
A category-4 license seeks to cater to the business models of specialist fund managers who operate or manage market collective investment undertakings (CIUs). Introduced in September 2021, the license brings crypto exchanges under the purview of Bahrain’s regulations and creates a conducive environment for the Middle East country to progressively adopt digital asset regulations without stifling innovation.
The license now allows Binance to stretch its tentacles beyond crypto assets trading to offering the next iteration of web3 services, custodial services, and portfolio management under the supervision of Bahrainian regulators. The crypto exchange is also the first in its category to be granted a category 4 license in the country.
“The upgrade to a Category 4 license in the Kingdom of Bahrain is a landmark achievement for Binance and further signifies our commitment to being a compliance-first exchange. This will allow us to provide the full suite of products and services that users have come to expect from an exchange, in a safe and well-regulated environment.” Said Richard Teng, Head of MENA at Binance.
The latest license comes on the heels of the crypto exchange being granted crypto-asset service provider licenses by Bahrain and Dubai in March. Despite being slow in adopting digital asset regulations a few years ago, middle east nations are fast embracing crypto regulations, attracting an endless list of crypto exchanges and blockchain firms. A 2021 report by Chainalysis described the middle east as one of the fasted growing regions for crypto assets, accounting for roughly 7% of the global trading volume.
Binance which is the largest crypto exchange in the world with about $80 billion in daily traded volume has previously had run-ins with regulators, receiving multiple warnings in Hong Kong, South Africa, the UK, and Singapore. Its determination to regain trust from regulators worldwide in the past four years has thus earned it a list of licenses, with countries in the Middle East leading.
Having acquired the said licenses, Binance now plans to launch trading and payment services in Bahrain and Dubai as early as June with recruitment already ongoing according to a May 22 report by the South China Morning Post.