Cryptocurrency exchange Binance is the first licensed crypto platform in El Salvador after receiving two licenses from the Central American country, according to an Aug. 8 statement.
Binance said it was licensed as a Bitcoin Services Provider (BSP) by the Central Bank of El Salvador (Banco Central de Reserva). At the same time, the National Commission of Digital Assets (Comisión Nacional de Activos Digitales) approved it as the first non-provisional Digital Assets Services Provider license (DASP).
Daniel Acosta, Binance’s general manager for Colombia, Central America and the Caribbean, said the license allows the exchange to expand its products and services in the crypto-friendly country, adding that:
“It is also a great opportunity to work closely with government agencies to support the adoption of crypto assets in the country, promote financial inclusion and innovation, and ensure customer protection.”
El Salvador’s positive attitude towards crypto
El Salvador maintains a friendly attitude towards the crypto industry, with the Central American country adopting Bitcoin as legal tender in 2021.
Since then, the Latin American country has acquired more than 2,300 BTC worth more than $70 million, according to data from Buy Bitcoin Worldwide. The government has also introduced several pro-crypto measures, including a bill that would allow the country to sell bonds backed by Bitcoin.
Despite these moves, CryptoSlate reported that BTC adoption remains low as citizens question the cryptocurrency’s benefits.
Earlier this year, Bitfinex said it was the first fully regulated digital asset exchange to receive a DASP license in El Salvador.
Binance is now licensed in 18 countries
Meanwhile, despite Binance’s recent regulatory battles in multiple jurisdictions, its license in El Salvador makes it one of the most licensed crypto platforms, with approvals and registrations in 18 countries, including Dubai, France, Italy, Spain, Japan, Sweden, etc.
Last month, Binance exited several European countries, including the United Kingdom, the Netherlands, Cyprus and others, as it failed to obtain proper regulatory approval to continue operations.
In addition, the exchange faces regulatory challenges in the US, where the Securities and Exchange Commission (SEC) and other regulators have filed charges for failing to comply with local regulations.