Binance Secures Licenses To Provide Crypto Services In El Salvador

Aug. 9, 2023
Binance Secures Licenses To Provide Crypto Services In El Salvador

The world’s largest crypto exchange by trading volume, Binance, has become El Salvador’s first licensed crypto platform after securing two licenses, according to an August 8 statement.

Binance said El Salvador’s Central Bank (Banco Central de Reserva) granted a Bitcoin Services Provider License (BSP). In tandem, the National Commission of Digital Assets (Comisión Nacional de Activos Digitales) has awarded the exchange the non-provisional Digital Assets Services Provider license (DASP).

Following achieving regulatory victory, the exchange is able to expand its services and products in the crypto-friendly country, Daniel Acosta, Binance’s general manager for Central America, Colombia, and the Caribbean, said.

Acosta further added:

“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.”

In July, Binance disclosed that its head of business development, Min Lin, would take over as head of Latin America. After this announcement, Lin said the company sees Latin America as the business-inclining region.

Australia, Canada, and some countries in the European Union have caused regulatory issues for Binance this year. Moreoever, the ongoing legal dispute with the US SEC and CFTC that forced the company to halt its operations is still widely discussed in the crypto industry.

Despite all these controversies, its approvals in El Salvador place it as one of the most licensed crypto platforms. It’s officially registered in 18 countries, which include Italy, Dubai, Japan, Sweden, Spain, France, and more.

El Salvador’s Growing Interest In Crypto

El Salvador sustains a positive attitude towards the crypto industry. The country accepted Bitcoin as a legal tender in 2021. Since then, El Salvador has obtained more than 2300 BTC, worth over $70M, as per data.

Moreover, the government has announced some pro-crypto measures. These include a bill that enables the country to sell bitcoin-backed bonds. Notably, BTC adoption remains low as citizens question the benefits of the cryptocurrency, Lane Rettig, Ex-Ethereum core developer, said.

Earlier this year, Bitfinex announced that it received a DASP license from El Salvador.

The latest development results from several months of hard work by the team to provide all the details to comply with the regulations, Lin said. 

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.