Binance Celebrates 7th Anniversary with 18 Compliance Licenses
On the occasion of Binance’s seventh anniversary, CEO Richard Teng reviewed the company’s journey as a leader in the crypto asset industry, highlighting achievements in user base, ecosystem development, security, and compliance.
The article mentions that Binance has over 210 million users, manages assets exceeding $100 billion, and offers a wide range of infrastructure and services to support users in exploring crypto assets. Additionally, Binance has made significant efforts in education, security cooperation, and user protection, including establishing the Academy and SAFU fund.
Looking ahead, Binance will continue to lead industry innovation, attract more institutional and retail users, and strive to achieve financial freedom and inclusion.
In addressing sensitive professional topics, Richard Teng discussed Binance’s acquisition of licenses and registrations in 18 global jurisdictions, ranking first among all centralized crypto asset trading platforms. This detail caught the attention of Mankun Lawyers, who began surfing the web to clarify which countries and regions Binance’s 18 licenses are located in.
18 Licenses
Like Bitcoin mining, compliance is an ongoing task, and these proof-of-work efforts must be visible to the public. On its official website, Binance lists the regulatory licenses, registrations, authorizations, and approvals it currently holds:
When selecting jurisdictions for its business, Binance demonstrates a well-thought-out strategy in navigating regulatory environments and seizing market opportunities.
Europe
Binance operates in several European countries (France, Italy, Lithuania, Spain, Poland, and Sweden), complying with the EU’s regulatory framework. This allows access to a large market with relatively stable and predictable digital asset regulations.
France
Binance France SAS is registered as a Digital Asset Service Provider (DASP) with the Autorité des Marchés Financiers (AMF) (registration number E2022-037). Binance France SAS can provide the following regulated services in France: digital asset custody, purchase/sale of digital assets for fiat currency, exchange of digital assets for other digital assets, and operation of a digital asset trading platform.
Italy
Binance Italy S.R.L. is registered as a Digital Asset Service Provider (DASP) with the Organismo Agenti e Mediatori (OAM) (registration number PSV5). This registration allows Binance Italy S.R.L. to provide crypto asset exchange and custody services.
Lithuania
Bifinity UAB (formerly Binance UAB) is registered as a Virtual Asset Service Provider (VASP) with the Lithuanian Republic Legal Entities Register and the local Financial Intelligence Unit (FIU) (registration number 305595206). This registration allows Bifinity UAB to provide crypto asset exchange and custody services. Lithuania’s low licensing fees and simple application process make it an economically attractive region for crypto businesses.
Spain
Binance Spain, S.L. (a Spanish subsidiary) is registered as a Virtual Asset Service Provider with the Bank of Spain (registration number D661). This registration allows Binance Spain, S.L. to provide crypto asset exchange and custody services.
Poland
Binance Poland Spółka z Ograniczoną Odpowiedzialnością is registered as a Virtual Asset Service Provider (VASP) with the Polish Tax Administration Chamber in Katowice (registration number RDWW–465). This registration allows the company to provide crypto asset exchange and custody services.
Sweden
Binance Nordics AB is registered with the Swedish Financial Supervisory Authority (registration number 66822) as a financial institution for virtual currency management and trading. This registration allows the company to offer a comprehensive range of products, including spot trading, OTC trading, custody, staking, savings, cards, and payment services.
Commonwealth of Independent States
Kazakhstan – Astana International Financial Centre (AIFC)
BN KZ Technologies Limited is licensed by the Astana Financial Services Authority (AFSA) to operate a digital asset platform and provide custody services in the Astana International Financial Centre (AIFC).
Middle East
With virtual asset licenses in Abu Dhabi, Bahrain, and Dubai, Binance is strategically positioned to capitalize on the expanding cryptocurrency market in the Middle East. These regions are not only developing sound regulatory frameworks that encourage innovation but are also becoming key hubs for global fintech advancements.
Abu Dhabi Global Market (ADGM)
Binance (AD) Limited has received a Financial Services Permission (FSP) from the Financial Services Regulatory Authority to conduct regulated custody activities related to virtual assets. Once Binance (AD) Limited meets the conditions specified in its FSP, it can start offering custody services to professional clients. The Abu Dhabi Global Market is reported to be the region’s fastest-growing financial hub, with asset management growth of 35%, and it typically focuses on institutional markets.
Bahrain
Binance Bahrain BSC (c) has obtained a Category 4 Crypto-Asset Service Provider (CASP) license from the Central Bank of Bahrain. This license allows Binance Bahrain BSC (c) to operate as a crypto asset exchange and custody service provider. Bahrain is known for its cautious and opportunistic approach to regulating crypto-related activities. In 2019, Rain Financial became the first company in Bahrain to receive a crypto-asset service provider license, followed by Binance, CoinMena, and BitOasis.
Dubai World Trade Centre (DWTC)
Binance FZE has obtained a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA). The VASP license allows Binance FZE to offer broker-dealer services, exchange services (including virtual derivatives trading), management and investment services, and lending services. Compared to Abu Dhabi, Dubai is seen as a more consumer-focused market. The Dubai Financial Services Authority is proactive and known for balancing risk and innovation.
Asia-Pacific Region
Binance has made a significant impact in the Asia-Pacific region, holding licenses in Australia, Indonesia, Japan, New Zealand, and Thailand. This region is crucial due to its large user base and rapidly developing digital asset market. Interestingly, Binance has avoided establishing operations in Hong Kong. The virtual asset regulatory framework in Hong Kong is still evolving, which might have provided opportunities; thus, the decision not to establish business there seems strategic, perhaps reflecting the reality that Hong Kong is still in the early stages of virtual asset regulation.
Australia
InvestbyBit Pty Ltd (ABN 98 621 652 579), trading as “Binance Australia,” is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) as a digital currency exchange (DCE) provider (registration number 100576141-001). This registration allows InvestbyBit Pty Ltd to offer digital currency exchange services.
Indonesia
On November 21, 2019, PT. ASET DIGITAL BERKAT, trading as TokoCrypto, received a trader candidate registration from Bappebti (number 001/BAPPEBTI/CP-AK/11/2019). This registration allows PT. ASET DIGITAL BERKAT to facilitate and conduct crypto asset-related trading activities in its name and/or on behalf of its clients.
Japan
Binance Japan Inc. is regulated by the Japan Financial Services Agency (JFSA) as a crypto asset exchange service provider, registration number: Kanto Local Finance Bureau 00031. Japan has established a relatively straightforward regulatory framework in the crypto space. Consequently, it is generally considered that obtaining such licenses in Japan is less complex and faster than in neighboring countries like Hong Kong, where the application process is often more cumbersome and time-consuming.
New Zealand
Investbybit Limited, trading as Binance New Zealand, is registered with the New Zealand Financial Service Providers Register (FSP1003864). This registration allows Binance New Zealand to provide the following financial services in New Zealand:
- purchasing virtual assets with fiat currency;
- trading virtual assets;
- buying or selling NFTs (non-fungible tokens) with fiat currency or virtual currency;
- investing in virtual assets.
Investbybit Limited is not licensed by New Zealand regulators to offer these financial services. Registration with the New Zealand Financial Service Providers Register or membership in the Insurance and Financial Services Ombudsman Scheme does not imply active regulation or oversight by New Zealand regulators.
Thailand
Gulf Binance Co., Ltd. (Gulf Binance) has obtained a digital asset operator license from the Thai Ministry of Finance through the Securities and Exchange Commission (SEC). Gulf Binance is a joint venture between Binance and Gulf Innova Co., Ltd. (Gulf). The two companies previously reached an agreement in 2022 to establish a digital asset exchange in Thailand. With these licenses, Gulf Binance operates as a digital asset exchange and digital asset broker.
Americas
Mexico
Bmex Techfin, S. de R.L. de C.V., has received vulnerable activity registration from the Tax Administration Service (SAT). This registration allows Binance to provide virtual asset services in Mexico and comply with the SAT’s anti-money laundering and counter-terrorist financing (AML/TF) regulations applicable to virtual asset service providers.
El Salvador
Binance El Salvador S.A. de C.V. has obtained a digital asset service provider (DASP) license from the National Digital Assets Commission (CNAD) (registration number PSDA/001-2003) and a Bitcoin service provider (BSP) license from the Central Reserve Bank (BCR) (registration number 648c5c0751164005aa47d43a).
Binance El Salvador S.A. de C.V. can offer the following regulated services in El Salvador: digital asset custody; purchase/sale of digital assets and their derivatives for fiat currency; promotion, construction, and management of all types of digital asset investment products; exchange of digital assets for other digital assets; risk and price analysis of digital assets; and operation of a digital asset trading platform.
Africa
South Africa
Brickhouse Trading Ltd, acting as the legal representative of FiveWest OTC Desk (Pty) Limited (authorized FSP 51619), an authorized Financial Service Provider in South Africa, provides futures and options to South African users. Brickhouse Trading Ltd is a member of the Binance Group.
The licensing status of Binance in Africa should be viewed in the broader context of Binance’s strategic investments in the African crypto industry. Notably, Binance has played a significant role in promoting crypto education and adoption across Africa. As early as 2020, Binance educated over 70,000 Africans on the basics of cryptocurrency, providing practical tutorials on account setup, buying and selling crypto, technical analysis, and crypto trading.
According to Binance, all users undergo mandatory KYC to comply with legal and regulatory obligations, including but not limited to anti-money laundering, counter-terrorism financing, and sanctions rules. But for friends in the simplified Chinese region reading this article, please raise your hand and tell me, as long-time Binance players, how’s everyone’s KYC going?
The Binance Empire
Founded in 2017 in Shanghai, Binance initially aimed to establish itself in Japan. However, the Japanese Financial Services Agency required licensing, forcing Binance to relocate to Malta. Despite this move, Malta did not become Binance’s permanent home. As CZ (Changpeng Zhao) stated, offices and headquarters are relics of the pre-internet era. Binance eschews a formal headquarters and prohibits employees from disclosing their actual work locations.
In the six years since its founding, Binance has established at least 73 companies worldwide, an accomplishment Reuters dubbed the “Binance Empire.” Based on information from his online research and combining it with Binance’s well-known operations, lawyer Mankun has compiled a list of some company registration locations. This information may serve as a reference for many Web3 companies looking to expand overseas.
Binance Holdings Ltd.
In 2017, Binance registered a holding company in George Town, Cayman Islands. According to a corporate linkage document seen by Decrypt, it was registered as Binance’s headquarters. In March 2018, this address was used for registration purposes and multiple trademarks.
Binance Holdings Ltd. is the parent company of the group, responsible for the overall strategic planning and operation. Its main business includes operating a global cryptocurrency exchange platform, providing trading, storage, and management services for various cryptocurrencies like Bitcoin and Ethereum.
Binance.US
In 2019, Binance’s platform was banned in the U.S. due to regulatory reasons. In response, Binance and other investors launched Binance.US, operated by BAM Trading Services and registered in Miami, Florida. This independent platform aims to comply with all applicable U.S. federal laws. Nevertheless, the platform is banned in six states: Hawaii, Idaho, Louisiana, New York, Texas, and Vermont.
Binance Labs
Founded in 2018, Binance Labs is the venture capital and incubation arm of the Binance Group. This department focuses on investing in and supporting blockchain and cryptocurrency startups, helping them grow and innovate. Labs promotes the construction and development of the blockchain ecosystem by providing funding, technical support, and market resources.
Binance Charity
Established in April 2018, Binance Charity focuses on the application of blockchain technology in philanthropy. This organization aims to improve the transparency and efficiency of charitable activities through blockchain technology, particularly focusing on projects in developing countries. The mission of Binance Charity is to address global poverty and inequality using blockchain technology.
Binance Academy
Founded in 2018, Binance Academy is the educational arm of the Binance Group, providing free educational resources on blockchain and cryptocurrency. Its content covers basic concepts of blockchain technology, cryptocurrency usage and trading, cybersecurity, and more, aiming to enhance public awareness and understanding of blockchain and cryptocurrency.
Binance Research
Established in 2018, Binance Research provides professional market analysis and reports. This department is dedicated to offering the latest information and trends in the cryptocurrency market through in-depth market research and data analysis, helping users make informed investment decisions.
Binance Chain and Binance Smart Chain (BSC)
Binance Chain and Binance Smart Chain (BSC), established in 2019, are blockchain platforms developed by Binance. Binance Chain mainly supports decentralized exchanges and other applications, while Binance Smart Chain (BSC) supports the development and operation of smart contracts and decentralized applications (dApps).
Binance NFT Marketplace
Launched in 2021, Binance NFT Marketplace is a platform for trading digital art and collectibles. The platform allows users to buy, sell, and auction various NFTs (non-fungible tokens), including artworks, music, game props, and other digital assets.
PT. Crypto Indonesia Berkat (Binance Indonesia)
Founded in 2020, PT. Crypto Indonesia Berkat is located in Indonesia. This company is responsible for providing cryptocurrency trading and management services in the Indonesian market, aiming to promote the development and adoption of the local cryptocurrency market.
Conclusion
As Binance celebrates its seventh anniversary, we witness this crypto asset giant’s remarkable journey from a startup to a global leading cryptocurrency exchange platform. By obtaining compliance licenses in 18 jurisdictions worldwide, Binance has not only solidified its market-leading position but also set new compliance standards for the entire industry. We look forward to seeing more innovative and growing Web3 companies like Binance providing higher quality and safer services to global users.