The world’s largest exchange platform has been making many positive moves in 2022 and has grown at an astonishing rate. Spending a fortune on deals and investments to create a safe environment for domestic crypto investors, Binance is unrelenting in its effort to offer services globally. Binance is playing the role of a big brother in the crypto industry by assisting in the recovery of funds and diminishing crime in the sector.

Binance is the world’s leading blockchain ecosystem, with a product suite that includes the most prominent digital asset exchange. Binance was launched in July 2017 by Changpeng Zhao, commonly known as CZ. Regarding the daily trading volume of cryptocurrencies, Binance is the largest cryptocurrency exchange registered in the Cayman Islands. The exchange provides a wallet for traders to store their electronic funds, and it also has support services for users to earn interest or transact using cryptocurrencies. Binance keeps the vast majority of its crypto in a cold wallet to limit losses in case of a hack.

What makes Binance successful?

The biggest reason for Binance success is its low transaction fee compared to other exchanges, and it also offers faster transactional time. Binance’s programming capabilities to handle a vast number of orders simultaneously makes it successful. It also processes more trades for cryptocurrencies such as Bitcoin and Ethereum, which are famous worldwide and attract more users for Binance. According to the CEO of Bitcode Method, it’s thought that CZ believes that the company’s success comes from its “safety and simplicity.” Binance’s success also comes from your leadership and the team. Every aspect of a company is key to its success. But since Web3 is such a community-focused sector, the community is also a huge contributor.

Cryptocurrency exchange license

For a cryptocurrency exchange venture to operate, a license is required — a document authorizing an entity to conduct a regulated cryptocurrency business according to the laws of the proposed jurisdiction. It establishes a party’s ID verification and full compliance with anti-money laundering regulations and policies in partnership with a bank or financial institution to set up an exchange to fiat currency. Here are the procedures for obtaining a license:

  • Step 1: determine the appropriate jurisdiction and cryptocurrency license requirements.
  • Step 2: entity formation and registration
  • Step 3: opening a corporate bank account
  • Step 4: documents preparation
  • Step 5: meeting local economic substance requirements
  • Step 6: license application filing

A cryptocurrency exchange may have to seek a license from a designated regulator of the country’s cryptocurrency business or digital assets. The cost of a cryptocurrency license differs when it comes to the price and the time it takes to apply for one, according to the country’s policy.

Countries in which Binance acquired a license in 2022

As Binance pushed its way into the global crypto exchange giant ranks, it completed all the steps above to attain a license. Countries where Binance made positive moves in 2022 are as follows:

Bahrain

Binance landed a full-fledged license to operate with Bahrain, making it the first country in the Middle East for Binance to provide services. The license was issued through the Cooperation Council for the Arab States of the Gulf. The permit allows Binance to offer crypto services, including custody, trading, and portfolio management.

Dubai

Binance was granted a Virtual Asset License in Dubai to extend limited exchange products and services to investors. It was also given the Minimal Viable Product license; according to a Binance blog post, the MVP license means that the exchange can open a client money account with a domestic bank and provide the following services to qualified customers:

  • Virtual asset exchange services
  • Conversion between virtual assets and fiat currencies
  • Transfer virtual assets
  • Custody and management of virtual assets
  • Virtual token offering and trading services
  • Virtual assets payments and remittance services

Binance cryptocurrency is allowed to provide services to retail investors in Dubai. Prime minister and ruler of the United Arab Emirates, Sheikh Mohammed bin Rashid Al Maktoum, further stated that approving the virtual asset law and establishing the Dubai Virtual Asset Regulatory Authority is a vital step that strongly positions the country to help grow and protect investors.

Kazakhstan

Binance received the green light to operate in Kazakhstan; in a crypto news blog post, Binance announced that they received approval to use a digital asset trading facility and provide custody services at the Astana International Financial Centre. This permanent license gives Binance an official status as a regulated platform in Kazakhstan. Binance will also assist in developing legislative guidelines and regulatory policies for crypto assets.

The Binance platform is dedicated to increasing the freedom of money for users. It features an unmatched portfolio of crypto products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions. It is trusted by millions of people worldwide. Since the beginning of 2022, Binance has been making waves and bridging the gap; it is also advisable that you read up on Binance to keep you informed about the structures and where it is heading as an exchange.