Binance's Bahrain License Upgraded for More Crypto Services. How does Binance Regulatory Compliance With Countries Around the Globe Accelerate the Expansion of the Crypto Ecosystem?

Binance, the world's largest cryptocurrency exchange, said that the Central Bank of Bahrain has granted its Bahrain business a Category 4 license, allowing it to provide a broader variety of services to Bahraini users. In December, Binance Bahrain received a preliminary license, followed by a complete license in March. According to the company's website, the new ranking "will enable Binance Bahrain to provide a full spectrum of crypto-asset exchange services." According to the exchange, it is the only crypto service provider in the country to receive a complete Category 4 license.

Regulators in a number of nations, including the United Kingdom, Japan, and Israel, targeted the exchange last year. Since then, it has been bolstering its compliance team by recruiting from the ranks of former regulators. It has also increased its presence in the Middle East. It was granted a restricted operating license in Dubai in March and temporary authorisation to operate as a broker dealer in Abu Dhabi, the UAE's capital, in April.

In my opinion Binance's increased regulatory compliance is great for the mainstream adoption of Cryptocurrencies and blockchain technology. A regulatory compliance that acknowledges operations of the biggest crypto exchange platform in the world will increase cryptocurrecy use in a country. Regulations creates trust with the crypto centric platforms and government institutions who in turn would facilitate cryptocurrency use, trust is also created between users and platforms as the regulations serve to protect rights of users. Also regulations would grant investors both retail and institutional confidence to invest the crypto and blockchain ecosystem.

The blockchain ecosystem is growing by facilitating the development of innovative projects that could reshape industries and even create new markets. The innovation of the developing ecosystem is embodied by projects such as Silks a blockchain-based metaverse that enables users to own, trade, and profit from thoroughbred racing horses, Shiryo is a P2E Card trading game in the metaverse that allows users to hold their cards as NFTsbased on the Ethereum network, Sandbox is like the metaverse-equivalent of MineCraft in terms of its design and functionality. It like a real estate on the metaverse, Decentraland an online world that allows users to create their own avatars and purchase plots of virtual land. I think that as blockchain technology becomes more mainstream.

However while regulations are good for the increased adoption they might stifle innovation and technological development with stringent rules and act to centralize the crypto ecosystem. I think it is an irony that Bitcoin and it's alternatives which were designed to be decentralized protocols have to be subject to centralized authorities in order to thrive.

News Source: https://www.coindesk.com/business/2022/05/26/binances-bahrain-license-upgraded-for-more-crypto-services/