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4 January 20223 minute read

DLA Piper advises Binance on its first Gulf regulatory approval in Bahrain

Global law firm DLA Piper has advised Binance Holdings Ltd, the world’s largest cryptocurrency exchange by trading volume, on its in-principle approval from Bahrain’s central bank (CBB) to be a crypto-asset service provider in the Kingdom of Bahrain.

Once completed, this will mark the first regulatory approval for a Binance entity within the Middle East and North Africa.

DLA Piper Partner and Head of the Bahrain office, Mohamed Toorani, commented, “We are honoured to be advising on the regulatory and licensing aspects for Binance’s crypto asset exchange in Bahrain and look forward to seeing the company grow as a result”.

Mohamed further added, “As fintech companies continue to disrupt the traditional global finance industry, they are becoming an increasingly important part of the financial services sector in Bahrain, as well as in the region. This move signifies Bahrain’s focus on the sector and cements Bahrain’s position as a leading fintech hub in the Middle East. Last year, the CBB announced that it would be introducing a digital currency settlement pilot and there has been significant venture capital investment in the sector in recent months, further demonstrating Bahrain’s commitment to expanding its digital finance market”.

Binance’s in-principle approval comes after it applied for a license from the CBB as part of its plans to become a fully-regulated centralised cryptocurrency exchange. Formalities are expected to complete in due course.

Other lawyers advising Binance on the deal included Jenan Banahi, Associate, DLA Piper Bahrain.