Key Takeaways:
- The Central Bank of Bahrain has granted a Payment Service Provider (PSP) license for Binance’s BPay Global.
- Bahrain continues to attract major blockchain businesses with its regulatory clarity and pro-crypto stand.
- Binance users can now enjoy fiat conversion, withdrawals, and deposits legally.
- BPay Global is expected to become a key PSP in the near future, deepening its presence in the Gulf milieu.
The Central Bank of Bahrain granted a Payment Service Provider (PSP) license for Binance’s BPay Global, allowing it to operate in the Kingdom of Bahrain. BPay Global can now hold custody fiat on behalf of customers and provide currency services such as deposits, withdrawals, and custody to worldwide Binance customers.
Abdulla Haji, Director of Licensing Directorate at the Central Bank of Bahrain (CBB), commented on the announcement that the license will enhance the country’s digital economic ecosystem, mainly the blockchain environment. General Manager of Binance Bahrain and BPay Global, Mr. Tameem Almoosawi, shared his optimism, saying that it will provide users with more affordable and convenient fiat on- and off-ramp options.
The previous prominent PSP license approval by CBB was for Crypto.com, a renowned web3 exchange. The approval was through a Bahrain subsidiary named “FORIS GFS BH B.S.C. CLOSED”, registered in the Kingdom of Bahrain. Apart from Binance and Crypto.com, web3 enthusiasts of Bahrain expect other A-tier exchanges to follow the same.
Bahrain’s Crypto Stands Ensure Long-Term Growth
Bahrain has one of the most advanced regulatory authorities in the Gulf milieu when it comes to cryptocurrencies and blockchain-based technologies. Since the establishment of a regulatory framework for the licensing and supervision of crypto in 2019, Bahrain has welcomed various foreign and regional Web3 businesses into the country’s financial ecosystem.
Bahrain encourages innovation by collaborating with compelling protocols such as BPay Global, all while maintaining centralization in the regulatory approach. BPay Global can now emerge as a significant participant in Bahrain’s crypto growth, and it could possibly result in significant Web3 developments in the Gulf region.
How Does a Payment Service Provider (PSP) License Work?
As the name indicates, a payment service provider is basically a third-party merchant service provider that facilitates electronic payments for users. Usually, a PSP will have multiple payment methods, such as credit card, debit card, and crypto, and they need approval/ license from the state to function. As a licensed PSP, BPay Global will be able to:
- HODL and secure customer funds.
- Facilitate deposits and withdrawals.
- Allow cross-border remittance.
- Enable payment and settlement services.
About BPay Global
BPay Global is a payment service provider that facilitates deposits, withdrawals, bill payments, and other finance-based services. Owned by Binance Group, it acts as a bridge between the fiat realm and the crypto realm. With the help of BPAY Global PSP, Binance users can open an e-wallet and make fiat top-ups on the exchange. As a newly launched protocol, more countries in the Gulf have yet to approve its services. Binance is expected to create a similar strategy of establishing connections with local partners, which it used in Europe and Asia.