The Central Bank of Bahrain has granted its approval to Binance for establishing itself as a fully-regulated centralised cryptocurrency exchange in the Kingdom of Bahrain. According to an official statement released by the crypto exchange, "Binance has received in-principle approval from the Central Bank of Bahrain (CBB) to establish itself as a crypto-asset service provider in the Kingdom of Bahrain. The in-principle approval comes after Binance applied for a license from the CBB as part of its plans to become a fully-regulated centralised cryptocurrency exchange."
Moreover, this move from CBB makes it the first crypto regulator in the Middle East North Africa (MENA) region to grant in-principle approval to a Binance entity, which is yet to complete the application process in due course. "The in-principle approval from CBB still requires Binance to complete the full application process," the release further stated.
Crypto experts say that regulations are necessary for the industry's growth apart from protecting consumers while encouraging innovation. Millions of investors have enjoyed gains while also enduring high volatility in the prices of cryptocurrencies. Crypto assets and associated products and services are in huge demand at present. As interlinkages with the regulated financial system are rising, it is becoming difficult for policymakers to monitor the risks from the evolving Defi sector.
Speaking of crypto regulations, the CFA, head of Institutional Business at Aave, the world's leading Defi liquidity protocol, Ajit Tripathi, had stated, "There are 13,000+ coins, and none of us can say that all the coins genuinely provide value to consumers. So, some rules are necessary. It's unreasonable to expect that the industry will mature and scale from a small number of consumers to seven billion without any regulations."
Binance is embracing regulations, but why?
Binance is embracing regulations, and according to a blog published on its official website, the reason behind it is that crypto regulations will help better integration with banks and bridge the gap between crypto and fiat money. Having a license will also help attract more and more investors and help in the growth of the cryptocurrency market.