El Salvador’s status as a leading crypto nation has been further strengthened as Binance, one of the world’s leading cryptocurrency exchanges, has become the first to gain full licensing approval within the country. This step is not just a win for Binance amid regulatory challenges but also brings a bullish wave for El Salvador’s growing crypto market.
Binance Received BSP And DASP Licenses
Binance announced its acquisition of two licenses in El Salvador, establishing itself as the premier “fully licensed” cryptocurrency exchange in the country.
The duo of licenses, namely the Bitcoin Services Provider (BSP) from the Central Reserve Bank of El Salvador and the inaugural non-provisional Digital Assets Services Provider (DASP) from the National Digital Assets Commission of El Salvador, empower Binance to introduce specialized products and offerings within the nation, the firm reported on Tuesday.
While Binance had previously operated in El Salvador via an offshore platform, these new licenses enable a more comprehensive expansion of its services, according to a company representative.
Daniel Acosta, general manager for Colombia, Central America and Caribbean at Binance, said,
“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.”
In January, El Salvador’s Legislative Assembly approved legislation governing digital securities, laying the groundwork for the nation to introduce bitcoin-backed securities, commonly referred to as “Volcano Bonds.” By April, Bitfinex announced that they had been awarded the first digital asset service provider license in the country.
Binance is presently engaged in a legal dispute with regulators in the United States. Even amidst regulatory challenges, the cryptocurrency exchange continues to hold its strong market presence and has recently crossed over 150 million registered users.
El Salvador’s Crypto Adoption Rises
Since 2021, El Salvador has demonstrated a favorable approach towards cryptocurrency. That year, it made history by becoming the first nation to officially adopt bitcoin as legal tender. Additionally, earlier this year, El Salvador established a law governing the issuance of digital assets beyond just bitcoin.
This legislation provides a clear regulatory framework for tokenized securities, alternative cryptocurrencies, and enterprises eager to engage in transactions or services centered around non-bitcoin digital assets.
Having secured licenses in El Salvador, Binance now boasts regulatory clearances and registrations across 18 global markets, encompassing countries such as France, Italy, Spain, Sweden, and Dubai. This puts them ahead in terms of regulatory approvals compared to other crypto exchanges, as highlighted by Binance.
