Binance has received a nod of approval from Bahrain’s central bank while facing another regulatory blow in Turkey.
Binance, the largest cryptocurrency exchange, has received principal approval from the Central Bank of Bahrain to work as a cryptocurrency service provider.
According to the statement, the company has filed an application as part of plans to become a "fully regulated centralized cryptocurrency exchange."
Binance also registered Binance Canada Capital Markets in Canada as a money services provider.
Boxing day. 🇨🇦 https://t.co/XmnyQIODLT— CZ 🔶 Binance (@cz_binance) December 27, 2021
Against this backdrop, CEO Changpeng Zhao published an article entitled Why Binance Adopts Regulation.
Having effective regulations that protect consumers while encouraging innovation is essential to the growth of the industry,” he wrote.
According to Zhao, industry players need to work with banks to accelerate the massive adoption of cryptocurrencies.
"Today 99.9% of money is still in fiat. And 5% of people who own cryptocurrency tend to keep a small part of their fortune in it. For the crypto industry to grow, we need fiat money both in and out of gateways. We need to build bridges. To do this, we need integration with traditional financial systems, banks, payment services, etc. And this requires licenses," said the head of Binance.
As AtoZ Markets earlier reported, Binance signed a Memorandum of Understanding with the Dubai World Trade Center Authority (DWTCA) in order to create an industry hub in the emirate.
Binance allegedly violated Turkish anti-money laundering laws
Zhao’s pivot towards working with regulators comes after a tough year for the company.
In June the UK’s financial watchdog, the FCA, issued a warning about Binance on its website because the company was offering financial services to customers without authorization. It later accused the crypto exchange of failing to provide basic information to regulators.
Binance was then hit with similar warnings from Japan and Holland before Italy and the Cayman Islands declared the exchange would not be licensed.
Just recently, Turkey’s Financial Crimes Investigation Board (MASAK) imposed an 8 million lira (around $750,000) fine on the local unit of Binance, as per the state-owned media agency Anadolu.
The penalty came as the Turkish operation of Binance allegedly violated local anti-money laundering (AML) laws. The lapses surfaced after MASAK carried out an audit of Law No. 5549 on the Prevention of Laundering Proceeds of Crime on the exchange.
The Turkish AML law requires platforms to verify all customers and store their personal data, including local identity numbers. In case of any suspicious activities, businesses need to report to the authorities within ten days.
However, Binance refrained from providing any details on the fine saying it does not publicly discuss its communications with the authorities and regulators.
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