It feels like every time I ever read about Binance in the news it is always how they have run afoul with this regulator or that regulator. Finally, it seems that they have found at least one regulator that will accept what they are offering. This issue with regulators has trotted the globe and was not something that was facing resistance in the East or the West it was the entire world.
From the United States to Europe, Southeast Asia, and even Japan regulators have either warned or punished Binance for the way that they operate. This has been a huge headache for the largest centralized exchange in the world but has not knocked them from the top spot yet. Regulators have pointed at a wide range of issues that they have with the company but the biggest and possibly easiest to address would be their lack of a headquarters.
Founder and CEO CZ has made a huge point in saying that Binance is a remote company and so they do not have a headquarters. While this might have been something that regulators could have been okay with and let slide during the height of the pandemic now that people are being encouraged to return to work it is an issue. Last I had read about this it was sounding like Binance may have been setting up a headquarters in France but that was a couple of months ago and nothing appears to have developed since this was rumored.
Since this is the image that is still in my mind about Binance and Binance has almost become synonymous with fighting regulators I was shocked to see they had gained any sort of approval from a financial regulator. However, they have managed to pull it off as the Abu Dhabi financial regulators have granted Binance in-principle regulatory approval allowing them to operate as a broker-dealer in virtual assets! This follows the Central Bank of Bahrain (CBB) issuing Binance a crypto-asset service provider license last month. When someone tweeted about how the Middle East was accepting of Binance while the rest of the world had turned their back on them CZ himself stated there was more to come!
Abu Dhabi and the whole UAE have been in the headlines in the US over the last month or so as the country has been a place where the Russian Oligarchy has been pouring their money and assets in hopes of protecting them from sanctions. At the beginning of March, the UAE was also officially put on the Grey List. This was done by The Financial Action Task Force (FATF) an international organization that monitors money laundering regulation and implementation by countries across the world. Other countries on the Grey List include the Cayman Islands, Turkey, Malta, and Panama among others. While being on the list is not great it is important to note that FATF did state that the UAE had made positive strides in improving its deficiencies.
Since the UAE is such a large finical market in the Middle East this was a huge win for Binance and could help regulators from other countries justify allowing Binance to earn their license. With CZ having said more are to come it leads me to believe that maybe some outlying countries like Brazil or Spain/Portugal could be gearing up to issue them. This would benefit the whole crypto space and would be great news to try and kick off another bull run!
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