- BPay Global obtains Payment Service Provider license from Bahrain’s central bank.
- It is the first Binance-owned company to receive fiat payment processing authorization.
- The license enables global wallet services, fiat deposits, and withdrawals to users.
Binance has reached a major regulatory milestone with its subsidiary BPay Global. The latter had received its Payment Service Provider (PSP) license from the Central Bank of Bahrain (CBB) on Thursday. BPay Global is now officially the first Binance Group firm to be authorized to handle fiat currency transactions.
The newly acquired license will enable BPay Global to offer full-service fiat solutions to Binance users globally. These comprise fiat deposits and withdrawal services, custody solutions, and other payment options. With these features, Binance users can create e-wallets and top up their accounts using conventional banking mechanisms such as wire transfers and debit/credit card payments.
Abdulla Haji, Director of Licensing Directorate at the Central Bank of Bahrain, emphasized the importance of this development. “We are pleased to announce the issuance of a license to a new payment service provider in Bahrain.”
Haji added that the CBB “remains committed to enabling a dynamic and progressive payment landscape that aligns with global advancements in financial technology.” The license is timely for Binance, which has encountered regulatory issues in various jurisdictions.
BPay Global was established in Bahrain to support Binance’s already established rapport with the country, where the exchange had received a license to offer crypto asset services in the past. Bahrain seeks to become a forward-looking financial hub for the Middle East. Bahrain has established regulations inclusive of both traditional financial services as well as emerging digital asset concepts.
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For Binance, obtaining this payment license would be advantageous as it expands globally. The ability to make real money transactions via a fully licensed entity could assist the exchange in coping with the strict regulations that have plagued many cryptocurrency companies.
BPay Global aims to develop a system for processing regular money payments following the rules. This aligns with the industry being compliant and interactive with existing financial systems. With this license, Binance can expand its regular money services globally, and this arrangement could be a model for similar systems in other locations.
