Binance receives green light from Canada and Bahrain

If Bahrain's application is approved, it will be Binance's first regulatory approval in the Middle East and North Africa region.

Binance development is celebrating the new year with approvals from two different sides of the world.

The Central Bank of Bahrain has granted a license in principle to the cryptocurrency exchange to operate as a provider of crypto-asset services in the Kingdom of Bahrain. According to the announcement, the approval in principle is the first for a Binance entity in the Middle East and North Africa region.

In a statement, Binance CEO Changpend Zhao, or "CZ," said the approval from national regulators is "essential to build trust in cryptocurrencies and blockchain and help further enhance mass adoption."

When it comes to licensing, it is "a matter of paperwork," according to Abdulkarim Haji, director of licensing at the country's central bank. He highlighted Bahrain as the ideal place for Binance development to establish its headquarters in the region.

In a surprise move, Binance also obtained a crypto financing license in Canada, incorporated as Binance Canada Capital Market. The exchange's new subsidiary will handle digital assets, money transfers, currency exchange, and will function as a money services business (MSB).

CZ confirmed the license on Twitter. He said the company is excited to expand its customer support team to include clients and other cryptocurrency exchanges.

On Friday, the cryptocurrency exchange applied to FINTRAC for an MSB license and it was approved on Monday. The exchange's current financial license will expire on December 31, 2024.

Bahrain, the gulf's smallest economy, has pioneered the digital asset sector. Rain Financial became the first licensed crypto asset platform in the region after receiving permission from the country's central bank to operate in 2019 . In January, the Bahraini monetary authority renewed a license for Manama-based CoinMENA .

Binance's decision reflects the company's increased focus on the Middle East region. The company recently became the first cryptocurrency exchange to join the new crypto hub established by the Dubai World Trade Center Authority, Cointelegraph reported.

Binance's regulatory odyssey has been nothing short of exciting in 2021 as the cryptocurrency exchange continues to expand into new countries and gain proper regulatory approval. At the same time, it has faced serious criticism, warnings and fines from various authorities.

Recently, Binance Turkey was fined $ 750,000 by the Financial Crime Investigation Board for failing to meet the requirements of financial surveillance reporting.