Binance has been granted an upgrade of Category 4 license by The Central Bank of Bahrain (CBB) to be a full-fledged crypto-asset service provider (CASP) after reportedly meeting all of the operational, technical, and security requirements.
The milestone comes nearly three months after Binance secured its preliminary authorization to establish a crypto-asset business. Hence, paving the way for it to begin operations within the country.
Richard Teng, Head of MENA at Binance, said: “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”.
“Team Bahrain has built a world-class infrastructure to support the fast-growing blockchain and crypto industry, with robust regulations. … Collaboration with industry leaders such as Binance will further enhance our mission to establish the Kingdom of Bahrain as a leading business hub,” added Khalid Humaidan, CEO of the Bahrain Economic Development Board.
Under the supervision of the Bahrain regulators, the crypto-asset license will allow Binance to provide custodial services, crypto-asset trading and portfolio management to customers.
Binance also received an in-principle approval (IPA) from the Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (the FSRA). The license allows the crypto giant to act as a broker-dealer in digital assets.
It will be able to offer its services to customers outside the GCC region, as well as the currently-serviced GCC region, once Binance has satisfied all IPA conditions and receives its Financial Services Permission (FSP). In addition to that, the FSP from the ADGM FSRA will enable Binance to list a greater number of virtual asset pairs as long as they meet the Accepted Virtual Assets criteria set out by the FSRA.
The exchange was targeted by regulators in a number of countries last year, including the U.K., Japan and Israel. It has also been stepping up its operations in the Middle East. This company received a limited operating license in Dubai in March, and provisional approval to operate as a broker dealer in Abu Dhabi, the capital of the United Arab Emirates in April.