Binance Announces Approval in El Salvador
- Binance is the first crypto exchange to be authorized by the NCDA.
- El Salvador made Bitcoin a legal tender in 2021.
- Binance will rely on its new license to continue its expansion in Latin America.
Crypto trading platform Binance has announced that it has received a license to offer services to users in El Salvador. Binance noted that it received a Bitcoin Services Provider License (BSP) and a Digital Assets Services Provider license (DASP) from El Salvador’s central bank and financial regulator.
The digital assets provider license allows Binance to provide digital wallets for its users in El Salvador, handle cryptocurrency payments, run a platform for trading digital assets, and offer custodial services.
Min Lin, Binance Head of Latin America, said in a statement,
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.
Binance’s general manager for Colombia, Central America, and the Caribbean, Daniel Acosta, noted that the “licenses allow Binance to expand the products and services offered, including options tailored to the needs of our customers in El Salvador.”
A Binance official revealed that Binance spent “many months” to complete the licensing process. Binance will find life easier in El Salvador compared to the United States since the Latin American nation already has a pro-Bitcoin policy.
In September 2021, El Salvador announced that it had made Bitcoin legal tender. Also, earlier this year, the country’s president, Bukele, signed a new Digital Securities Law, ushering in Bitcoin-backed government bonds and establishing the National Commission of Digital Assets (NCDA) to supervise cryptocurrency regulation. Binance is the first cryptocurrency exchange to have its operation authorized by the NCDA.
Binance continues its quest for expansion
Binance’s approval in El Salvador will provide much-needed relief to the exchange after suffering several setbacks in the US and in Europe. Binance and several US regulators currently share tense relationships due to multiple reports of malpractice against the exchange.
The Securities and Exchange Commission (SEC) in the United States has accused Binance and its CEO, Changpeng “CZ” Zhao, of violating securities laws and employing dishonest trading methods to profit at the risk of US investors.
Also, Binance’s plans to move much of its operations to Europe have not gone as the exchange had planned. Like in the US, Binance has failed to secure the confidence and support of most European regulators.
For example, Binance has been refused an operating license in countries such as Austria, the Netherlands, and Germany. The exchange also announced plans to quit Belgium, Canada, and Cyprus. The Nigerian Securities and Exchange Commission recently warned its citizens against using Binance, which it claims operates illegally in Nigeria.
Furthermore, Binance was slapped with a $3.6 million fine by the Dutch central bank for allegedly operating without approval. However, despite these discouraging feats, Binance has continued to seek legal expansion.
Binance recently announced that it had begun operations in Japan. The exchange has now secured licenses in Dubai, France, Spain, Sweeden, and Italy, among others.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
