Binance has announce that it has become the first fully licensed cryptocurrency exchange in El Salvador. This move follows the issuance of the Bitcoin Services Provider license (BSP) by the Central Reserve Bank (Banco Central de Reserva) and the first non-provisional Digital Assets Services Provider license (DASP) by the National Commission of Digital Assets (Comisión Nacional de Activos Digitales).
This action represents a step forward in Binance's ongoing efforts to obtain licenses in key markets worldwide. The company now holds approvals and registrations in 18 markets globally, including countries like France, Italy, Spain, Sweden, and Dubai.
Min Lin, Binance's Head of Latin America, expressed gratitude for receiving the license and underscored the collaborative work with regulatory agencies to establish industry standards in the crypto and blockchain sector. Lin acknowledged the team's dedication to meeting regulatory requirements and demonstrating commitment to the Salvadoran market and users. Lin also acknowledged the Central Reserve Bank and the National Commission of Digital Assets for their support.
Daniel Acosta, Binance's General Manager for Colombia, Central America, and the Caribbean, highlighted that these licenses allow Binance to expand its services to meet the specific needs of customers in El Salvador. Acosta also emphasised the opportunity to collaborate closely with government authorities to promote the adoption of crypto assets, foster financial inclusion, innovation, and customer protection.
In 2021, El Salvador became the first country to recognise Bitcoin as legal tender and enacted a law regulating the issuance of digital assets by both government and private entities.
Binance, known as a blockchain and cryptocurrency infrastructure provider, operates the largest digital asset exchange by trading volume. The platform wants to enhance financial freedom and offers a range of crypto products and services, including trading and finance, education, research, social initiatives, investment, decentralisation, and infrastructure solutions.
In early August 2023 the company secured an operational license in Dubai, marking a significant step towards full regulation within the jurisdiction. In 2022, Binance obtained a Minimal Viable Product (MVP) license from Dubai's Virtual Assets Regulatory Authority (VARA), enabling services like holding clients' funds locally, running a crypto exchange, and providing payment and custody solutions.
On another note, Binance opted not to pursue licensing in Germany due to regulatory limitations. Germany's financial regulator, BaFin, rejected Binance's license application, prompting the exchange to proactively withdraw its application. This decision aligns with the crypto sector's increasing regulatory scrutiny and Binance's ongoing legal dispute with the US Securities and Exchange Commission.
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