BPay Global, a subsidiary of leading cryptocurrency exchange Binance, has achieved a significant milestone by obtaining a Payment Service Provider license from the Central Bank of Bahrain. This development, announced on April 9, paves the way for Binance to broaden its fiat services through BPay Global while operating as a regulated entity in Bahrain.
The newly acquired license empowers BPay Global to offer a range of services including fiat top-ups, withdrawals, custodial solutions, and e-wallet functions. Binance users can now seamlessly conduct fiat transactions through bank transfers, as well as debit or credit cards directly on the platform.
Abdulla Haji, Director of the CBB’s Licensing Directorate, expressed optimism about the license, emphasizing its positive impact on Bahrain’s digital payments ecosystem. Tameem Almoosawi, General Manager of Binance Bahrain and BPay Global, highlighted that this marks the first time a Binance entity has been authorized to operate as a full-fledged payment service provider. Almoosawi added that BPay Global’s licensing will provide Binance users with enhanced choices for cost-effective fiat on-and off-ramps.
“Bahrain’s Crypto Strategy: From Bitcoin Products to BPay Licensing” sheds light on Bahrain’s commitment to fostering a regulated environment for digital finance. The approval of BPay Global’s PSP license aligns with Bahrain’s broader agenda to establish itself as a prominent digital finance hub in the MENA region.
The Kingdom’s proactive approach is evident in initiatives like the National Bank of Bahrain’s introduction of the region’s first Bitcoin-linked structured investment product in collaboration with ARP Digital. This product offers accredited investors exposure to Bitcoin’s potential gains with capped upside and full capital protection. ARP Digital’s operational license from the NBB facilitates the expansion of its crypto custody, trading, and portfolio management services.
Moreover, Bahrain’s regulatory landscape has attracted global players like Crypto.com, which also secured a PSP license in the country. Chainalysis data highlighted the MENA region’s significant contribution to global crypto transaction volume, further underscoring Bahrain’s growing importance as a base for cryptocurrency firms.
The article also delves into “Crypto Licensing Trends Across Global Markets,” illustrating how Bahrain’s regulatory stance mirrors a broader international trend. Examples include OKX securing passporting rights under the European Union’s Markets in Crypto-Assets (MiCA) framework, enabling the exchange to provide services across all 28 EEA states. Similarly, Kraken’s EMI license from the UK Financial Conduct Authority enhances deposit and withdrawal services for UK users.
The integration of BPay Global into Bahrain’s regulated financial ecosystem, alongside developments in Europe, reflects the concerted effort to incorporate crypto services into established financial frameworks. This shift underscores the maturation and mainstream acceptance of cryptocurrencies and blockchain technology in the global financial landscape.