- Binance subsidiary BPay Global receives Bahrain’s first PSP license for fiat services.
- The license enables global fiat deposits, withdrawals and custody directly from Bahrain.
- Bahrain’s approval strengthens Binance’s compliance amid regulatory scrutiny worldwide.
Binance has obtained its initial Payment Service Provider (PSP) license in Bahrain through the local subsidiary BPay Global. The Central Bank of Bahrain granted the company the license to conduct fiat-related services on a global level from the country.
This move marks the first time a Binance-owned entity has received a PSP license. This allows it to provide fiat custody, e-wallet services, and top-up and withdrawal options for customers worldwide. The development arrives at a time when Binance continues to face mounting legal scrutiny and regulatory pressure in other jurisdictions.
BPay Global to Bridge Traditional Finance and Crypto
Pay Global can now provide bank transfer and card payment channels including deposit and withdrawal in fiat transactions. The license also gives room for the firm to store the fiat funds of its users. It helps Binance further push toward integrating more of the typical financial services basis into its global operations.
The approval from Bahrain’s central bank reinforces the country’s evolving digital finance policy. The CBB has described the license as part of a wider effort to develop a modern and secure digital payments ecosystem. The new framework aims to balance innovation with regulatory safeguards.
General Manager of Binance Bahrain and BPay Global Tameem Almoosawi confirmed that the license would provide users a low-cost fiat on and off-ramp gateway. The Central Bank of Bahrain said that including crypto-related services in its regulatory scope was to reflect the changing global financial trends.
This license grants Binance an operational base within a regulated environment, providing access to banking infrastructure that could otherwise be restricted. Also, it positions the company to serve users across various regions where fiat transactions remain essential for crypto onboarding.
Strengthened Compliance as Binance Eyes Global Expansion
This license may help Binance fix its compliance image after a series of enforcement actions in major markets. The exchange has been fined or investigated by regulatory agencies in the United States, United Kingdom and several European countries for operating without proper authorization.
Amid these legal challenges, the Bahrain PSP license represents a regulatory milestone. It gives Binance a compliant method to support fiat access for global customers. Binance can better facilitate conversions between national currencies and crypto with regulated banking services.
Also, Bahrain’s decision to license BPay Global is poised to further boost Binance’s interaction with the institutions. Crypto exposure has also been averse to traditional financial firms due to unclear regulations. Licensing provides a clearer framework for collaboration.
The financial authorities of the country will continue monitoring licensed digital asset entities for compliance with anti-money laundering and consumer protection standards. This ensures that PSPs offering crypto-related services follow the same legal expectations as traditional payment institutions.
Though Binance remains under scrutiny in other countries, the Bahrain development signals continued progress in integrating crypto with regulated financial systems. This also reflects the strategic value of establishing operational hubs in jurisdictions with favorable crypto regulations.
