Binance Secures Crypto Exchange License in El Salvador

Binance Secures Crypto Exchange License in El Salvador – Presently, Binance has been issued a Bitcoin Services Provider License (BSP) and a Digital Assets Services Provider License (DASP) by El Salvador’s central bank and crypto regulator. These licenses enable the exchange to provide custodial services, facilitate cryptocurrency payments, offer digital wallets, and run a digital asset exchange platform within the country.

Daniel Acosta, the firm’s general manager for Colombia, Central America, and the Caribbean, said that the “licenses allow Binance to expand the products and services offered including options tailored to the needs of our customers in El Salvador.” In September 2021, El Salvador embraced a crypto-friendly approach by designating Bitcoin as an official form of legal tender. 

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Earlier this year, in January, President Bukele of El Salvador enacted a fresh Digital Securities Law. This law introduced government bonds backed by Bitcoin and established the National Commission of Digital Assets (NCDA) to supervise cryptocurrency regulations. The NCDA has granted approval to Binance as the inaugural cryptocurrency exchange permitted to conduct operations within the nation.

In April 2023, regulatory authorities in El Salvador gave the green light to Bitfinex Securities’ request to trade tokenized equities and assets that generate yields, such as government bonds. The positive regulator news in El Salvador comes on the back of various regulatory setbacks for Binance in the U.S. and Europe.

In the U.S., the Securities and Exchange Commission (SEC) has charged Binance and its CEO, Changpeng “CZ” Zhao, with breaking securities rules and allegedly using unethical trading practices to enrich “themselves by billions of dollars while placing investors’ assets at significant risk.” Encountering regulatory hurdles in Europe, the exchange encountered issues such as a $3.6 million fine from the Dutch central bank for unauthorized operations within the Netherlands. 

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Additionally, Binance’s efforts to secure operating licenses have been denied in Germany, Austria, and the Netherlands. Nevertheless, undeterred by these challenges, Binance has remained committed to pursuing regulatory authorization on a global scale. Alongside its recent approval in El Salvador, the company has successfully obtained licenses across 18 markets, including countries such as France, Italy, Spain, Sweden, and Dubai.

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