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Regulatory Victory: Binance Bags Licenses To Offer Crypto Services In El Salvador

Binance, the industry’s biggest cryptocurrency exchange, has scored two licenses for providing crypto-related services to residents of El Salvador. This makes the Bitcoin-friendly Latin American nation the 18th market where Binance has received a regulatory nod.

Binance In El Salvador: Positive For Regulatory Pursuit

Binance today has received a Bitcoin Services Provider License (BSP) and Digital Assets Services Provider license (DASP) from El Salvador’s Central Reserve Bank and the country’s National Commission of Digital Assets.

These new licenses will let Binance offer custodial services, process crypto payments, provide digital wallets, and operate a crypto asset exchange platform within the Central American nation.

Daniel Acosta, Binance’s general manager for Colombia, Central America, and the Caribbean, 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.” In other words, the regulatory approval means Binance can operate fully and legally in a very Bitcoin-friendly nation.

El Salvador has long displayed a pro-crypto stance, having been the first country in the world to adopt Bitcoin as legal tender alongside the U.S. dollar in September 2021. In January of 2023, the Legislative Assembly of El Salvador passed a Digital Securities Law that created a framework for the nation to launch Bitcoin-backed government bonds, enabling El Salvador to develop its own Bitcoin city.

Binance has become the first crypto exchange to receive a green light from the NCDA to operate an exchange within El Salvador.

Binance Forges On Despite Regulatory Woes

The positive regulatory news in El Salvador comes as Binance has found itself squarely in the regulators’ sights and the subject of high-profile lawsuits unveiled in recent months.  

In the U.S., the Securities and Exchange Commission (SEC) has sued Binance and its boss Changpeng Zhao for violating federal security laws. Binance could also face fraud charges from the Justice Department, although prosecutors have concerns about the risk of an FTX-style bank run.

The world’s largest crypto exchange has additionally announced the termination of its operations in Austria, the Netherlands, Cyprus, and Germany after failing to secure operating licenses there.

Despite these hurdles, Binance continues to be ruthless in its pursuit of regulatory nods across the globe. Adding El Salvador’s licensing, the exchange has secured approval in 18 countries, including Italy, Sweden, Spain, France, Dubai, and most recently Japan.

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