Binance Obtains Regulatory Approval to Offer Crypto Products in Italy

Binance Obtains Regulatory Approval to Offer Crypto Products in Italy

Binance Exchange, one of the largest Cryptocurrency Exchanges in the world, has received regulatory approval from Italy’s financial regulator as a legal entity, a few weeks after securing an affirmation from the French government.

 

“Clear and effective regulation is essential for mainstream adoption of cryptocurrencies,” said Binance CEO Changpeng Zhao. This new approval will allow the company to resume its operations and offer cryptocurrency products and services to users in the country and could open offices in Italy and expand the local team, Binance said.

 

Binance is one of the 14 virtual asset operators to be registered by the Organismo Degli Agenti e dei Mediatori (OAM), which administers crypto operators in Italy, the OAM said on its website. Earlier this year Italy imposed a new mandate that virtual asset providers operational in the country should register, establish a local subsidiary with a physical presence, and agree to comply with anti-money laundering requirements.

 

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In July 2021, Italy banned Binance from offering futures and derivatives products and services in the country, saying that the firm was “not authorized to provide investment services and activities”. The statement also restricted Binance from making its website available to users in Italy.

 

The latest approval is a sign that the world’s largest cryptocurrency firms and exchanges are gaining traction with regulatory bodies in certain strategic markets, especially Europe. In recent months, the Binance exchange has secured regulatory approval from France, Bahrain, Dubai and Abu Dhabi, while rivals FTX and Kraken Exchange got nods in Dubai and Abu Dhabi, respectively.

 

 

At the same time, Binance is also seeking legal approvals in Switzerland, Sweden, Spain, Netherlands, Portugal and Austria. However, countries like Singapore have forced stricter cryptocurrency-licensing protocols, citing risks to retail investors and fear that digital currency might be used for money laundering and financing terrorism.

 

The Binance Exchange is a cryptocurrency exchange founded in 2017. It features a strong focus on altcoin trading. Binance exchange offers crypto-to-crypto trading in more than 500 cryptocurrencies and virtual coins, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Dogecoin (DOGE), and its own token Binance Coin (BNB). In 2018, it moved its headquarters to Malta, EU, in response to China's strict regulations on cryptocurrency exchange businesses.

 

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Primarily famous for its crypto-to-crypto trading—buying and selling between two cryptocurrency pairs —the Binance exchange has one of the lowest transaction fees for cryptocurrency exchanges. Trading on Binance is advantageous due to high liquidity and offers and discounts to users who pay in the native BNB cryptocurrency coins.

 

The name "Binance" comes from a mixture of two words "bitcoin" and "finance." The exchange claims high standards of safety and security, with multi-tier and multi-clustered architecture, and delivers high processing throughput—it claims that it can process around 1.4 million orders per second.