Binance, the world’s largest cryptocurrency exchange, has achieved a significant milestone by becoming the first fully licensed crypto exchange in El Salvador. This move comes after Binance obtained a Bitcoin Services Provider license (BSP) from the Central Reserve Bank (Banco Central de Reserva) and a non-provisional Digital Assets Services Provider license (DASP) from the National Commission of Digital Assets of El Salvador. This makes Binance the only licensed crypto exchange in the country and showcases its commitment to complying with global regulatory standards.
With the addition of this new license, Binance now boasts approvals and registrations in a total of 18 markets, including major economies like the United States, the United Kingdom, and Germany. This makes Binance the cryptocurrency exchange holding the highest number of licenses worldwide. Binance’s Head of Latin America, Min Lin, expressed his gratitude for the license and highlighted the collaborative efforts between Binance and regulatory agencies globally to establish and support industry standards for crypto and blockchain.
The licensing of Binance in El Salvador is particularly significant considering the country’s growing adoption of blockchain technology. El Salvador made history earlier this year by becoming the first nation to recognize Bitcoin as legal tender. In addition, the government passed a law to regulate the issuance of digital assets by both state and private entities. Binance’s regulatory license in El Salvador now aligns the country with others that have recognized the exchange by granting similar licenses.
Meanwhile, Binance Labs, the venture capital arm of the exchange, continues to invest in various crypto projects. Recently, Binance Labs announced four investments made through its incubator program. These include a blockchain scaling startup, a decentralized exchange, a decentralized finance lending platform, and a Web3 gaming company. Despite the ongoing regulatory scrutiny faced by Binance’s parent company, Binance Labs remains committed to supporting innovative projects in the crypto space.
It is important to note that the licensing achievement in El Salvador comes at a time when Binance is facing increased regulatory scrutiny, particularly from law enforcement agencies in the United States and other countries. In June, the Securities and Exchange Commission (SEC) filed 13 charges against Binance for allegedly violating federal securities laws by operating as an unregistered exchange. The SEC claims that Binance offered unregistered securities, including its BNB token and BUSD stablecoin, to the general public. The charges also include failures to register as a broker or an exchange.
While Binance confronts regulatory challenges in some jurisdictions, the company’s licensing in El Salvador represents a significant step towards building a strong and compliant presence in the crypto industry worldwide. As Binance continues to collaborate with regulatory agencies, it aims to set the standards for security and innovation in the rapidly evolving blockchain ecosystem.