Binance, one of the world’s leading cryptocurrency exchanges, has achieved a significant milestone in El Salvador by becoming the first fully-licensed crypto exchange in the country. This development comes after El Salvador made history in 2021 by recognizing Bitcoin as legal tender.
Key Details of Binance’s Licenses
Two Licenses Acquired: Binance has been granted the Bitcoin Services Provider license (BSP) and the Digital Assets Services Provider license (DASP). These licenses were issued by El Salvador’s Central Reserve Bank and the National Commission of Digital Assets, respectively.
First Non-Provisional Crypto Services Provider: With the DASP license, Binance has become the first non-provisional crypto services provider in El Salvador.
Tailored Crypto Products and Services: These licenses enable Binance to offer customized crypto products and services tailored to the needs of customers in El Salvador.
Binance’s Commitment to Compliance
Binance’s Head of Latin America, Min Lin, expressed honor at receiving the licenses and emphasized the company’s commitment to working with regulatory agencies globally. The approval comes after regulators completed all due diligence, reflecting Binance’s pursuit of regulatory compliance worldwide.
Daniel Acosta, Binance General Manager for Colombia, Central America, and the Caribbean, commented on the opportunity to collaborate with government authorities in El Salvador. He noted that the licenses would allow Binance to “foster financial inclusion, innovation, and ensure customer protection.”
Global Expansion and Regulatory Challenges
Binance’s licensing in El Salvador adds to its growing list of countries where it has been licensed or granted registration status, including Italy, France, Spain, Sweden, and Dubai.
However, it’s worth noting that Binance’s expansion has not been without challenges. The exchange was sued by the SEC in June and has faced regulatory issues leading to its exit from several countries. Despite these hurdles, Binance has been aggressive in its expansion efforts, including into Japan.
Binance’s achievement in El Salvador marks a significant step in the exchange’s global expansion strategy and its commitment to adhering to regulatory standards. By securing these licenses, Binance is positioned to play a key role in El Salvador’s pioneering embrace of cryptocurrency, offering tailored solutions to meet the unique needs of the local market.
The development also underscores the growing acceptance of cryptocurrency within the regulatory frameworks of various countries, reflecting a maturing industry.
