Changpeng Zhao is the CEO of Binance.
REUTERS/Darrin Zammit Lupi
The world's largest exchange by volume is on track for its first expansion in the Gulf region after receiving tentative regulatory approval to become a crypto asset service provider.
The company said in a statement Monday that the in-principle approval still requires the full application process to be completed. The green light was given after the exchange applied for a license.
Changpeng Zhao, CEO and founder of the company, said that the approval recognizes the company's commitment to comply fully with regulatory requirements.
The company said that the central bank of Bahrain will be the first in the Middle East-North Africa region to approve a Binance entity.
While the Gulf's smallest economy, it still represents a significant step for the company. In November, he told the news agency that he bought his first home in the city to show his support.
The company said in a statement that on December 21 it signed a Memorandum of Understanding with the city of Dubai to establish a digital assets industry hub.
Binance has been facing regulatory scrutiny for failing to comply with different regulations. The lack of a physical headquarters is a part of the difficulty. Employees at the company have been allowed to work remotely.
The company needed to address this problem, according to Zhao. The executives of the firm are talking about their search for a headquarters. The United Arab Emirates is a possible candidate, according to a report in December.
In Canada, the company obtained a license for cryptocurrencies, as confirmed by CZ on the social networking site. Virtual currencies, money transfers, foreign exchange dealings will be handled by the new subsidiary.
Business Insider has an original article.
