Binance announced it is the first cryptocurrency exchange to be fully licensed in El Salvador. In a Tuesday blog post, the world’s largest crypto exchange said it made the significant achievement after receiving both a Bitcoin Services Provider license (BSP) from the Central Reserve Bank (Banco Central de Reserva) and the first non-provisional Digital Assets Services Provider license (DASP), from the National Commission of Digital Assets (Comisión Nacional de Activos Digitales).
Min Lin, Binance Head of Latin America, said the license was granted after many months of effort from the Binance team to “provide all information and proceed with the necessary due diligence” required by the BSP and the DASP.
Binance to Expand Services in El Salvador
While Binance has been offering its services in El Salvador through an offshore exchange before now, the two licenses will allow the company to expand its services in the Central American nation, according to Daniel Acosta, Binance General Manager for Colombia, Central America, and the Caribbean.
Acosta added that the regulatory approval will also allow the crypto exchange to join hands with the Salvadoran government to support the adoption of crypto in the country, “foster financial inclusion, innovation and ensure customer protection.”
El Salvador is known to be very supportive of crypto, becoming the first country to make Bitcoin a legal tender nearly two years ago. In January 2023, El Salvador passed a new Digital Securities bill that creates a legal framework to transfer digital assets used in public issuances in the country.
The Most Licensed Crypto Exchange
Meanwhile, with the recently-obtained license in El Salvador, Binance said it now has approvals and registrations in 18 markets, including France, Italy, Spain, Sweden, and Dubai, more than any other crypto exchange.
Binance, however, continues to face regulatory setbacks in the U.S. On June 5, the United States Securities and Exchange Commission (SEC) sued the exchange and CEO, Changpeng Zhao (CZ), for allegedly operating illegally and misusing customers’ funds. The exchange is also being sued by the Commodity Futures Trading Commission (CFTC) and investigated by the Department of Justice (DOJ) is also targeting the exchange.
