(Binance) expands in the Middle East and obtains a license to operate in Bahrain

Binance, which runs the world's largest cryptocurrency exchange, said on Tuesday that it has obtained a license to operate as a crypto asset services provider in Bahrain, strengthening the company's foothold in the Middle East as its trading platform faces increasing scrutiny from financial regulators elsewhere. “Licensing from Bahrain is a milestone in our journey to obtain a full and regulated license worldwide,” Changpeng Zhao, co-founder and CEO of Binance, said in a statement. “I am proud of the hard work the Binance team has done to meet the strict standards of the Central Bank of Bahrain, not only locally but globally by ensuring that we meet regulators’ requirements and protect users with strong anti-money laundering and counter-terrorism financing policies.”

Binance said that the license is the first of its kind for the company in the Gulf countries. The company added that the regulatory green light will allow Binance to provide crypto asset trading, custody and portfolio management services to clients. Binance, a company registered in the Cayman Islands, has shifted its focus to the Middle East as its massive cryptocurrency trading unit comes under scrutiny from regulators in at least a dozen other jurisdictions, primarily focusing on concerns over anti-money laundering practices and investment risks to traders.

Meanwhile, Binance is quickly moving to expand its business in other parts of the world. The company announced on Monday that it has signed a memorandum of understanding to acquire Brazilian stock brokerage Sim; Paul Investimentos. Binance said the company is licensed by the Brazilian Central Bank and the Securities Market Authority.

The acquisition, which will require approval from regulatory officials, is aimed at further expanding Binance's business in the South American country. In December, Binance also signed a cooperation agreement with the Dubai World Trade Centre, which aims to create an “international ecosystem for virtual assets” and help develop crypto ecosystems in the UAE. Founded in 2017, Binance first began operating in China but later moved its headquarters outside the country as the government cracked down on cryptocurrencies.

The company has rapidly grown to become the world's largest crypto exchange by a significant margin, processing $504 billion worth of spot trades in digital assets in January alone, according to data provider CryptoCompare. Its business now covers decentralized finance, payments, investment, and education.