The world’s largest cryptocurrency exchange, Binance, has announced that it has become the first fully licensed cryptocurrency trading platform in the country of El Salvador.
Binance announced the news after the platform received two licenses from the Central American Nation, according to a statement released on the 8th of August.
According to a statement released by the exchange, Binance became the first fully licensed crypto exchange to operate in El Salvador after it received the two licenses required. The two licenses in question are the Bitcoin Services Provider License (BSP) given by the Central Reserve Bank (Banco Central de Reserva) and the Digital Assets Services Provider License (DASP) provided by the National Commission of Digital Assets ((Comisión Nacional de Activos Digitales).
According to Binance, the approval is another step in the exchange’s growing efforts to get licenses and permissions in key markets around the world. With this latest approval, Binance has approvals and registrations in 18 global markets, including Italy, Spain, France, Sweden, and Dubai. Binance General Manager for Colombia, Central America, and the Caribbean, Daniel Acosta, stated,
“These licenses allow Binance to expand the products and services offered, including options tailored to the needs of our customers in El Salvador. It is also a great opportunity to collaborate closely with government authorities to support the adoption of crypto assets in the country, foster financial inclusion, innovation, and ensure customer protection.”
Speaking about the developments, the Binance Head of Latin America, Min Lin, stated,
“We are honored to be granted this license as Binance continues to work collaboratively with regulatory agencies around the world to support global standards for the crypto and blockchain industry. This announcement comes after many months of dedication from our team to provide all information and proceed with the necessary due diligence required by the agencies, showcasing our commitment to the Salvadoran market and our users.”
El Salvador And CryptoEl Salvador, under President Nayib Bukele, has maintained an extremely welcoming posture towards crypto, especially Bitcoin. In fact, the country had given Bitcoin the status of legal tender as far back as 2021. The country has also been on a Bitcoin acquisition spree and has so far acquired over 2300 BTC, according to data sourced from Buy Bitcoin Worldwide. According to current prices, the value of El Salvador’s Bitcoin reserves is estimated to be around $70 million. Additionally, the government of El Salvador has also introduced several pro-crypto and pro-Bitcoin measures, such as a bill allowing the country to sell bonds that are backed by Bitcoin.
However, despite these measures, reports have suggested that crypto adoption in the country remains low, as citizens question the long-term benefits of crypto adoption. Earlier this year, Bitfinex announced that it had become the first fully regulated digital assets exchange to receive a DASP license in El Salvador.
Binance Increases Global PresenceDespite the exchange facing numerous regulatory headaches across a number of jurisdictions, Binance has managed to expand its global footprint further. After receiving its operating licenses in El Salvador, Binance has become the most widely licensed crypto platform and now has approvals and registrations in over 18 countries around the world. These include countries such as Japan, Sweden, Dubai, France, Italy, and several others.
However, the exchange has also faced several setbacks, having exited several prominent markets such as Cyprus, the Netherlands, and the United Kingdom. The exchange had to exit these markets after it failed to get the required regulatory approval to continue operations. Binance is also facing several regulatory challenges in the US, with the United States Securities and Exchange Commission (SEC) charging the exchange of failing to comply with local laws and regulations.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
