Binance Secures Licenses to Operate in El Salvador
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Binance, the world’s largest cryptocurrency exchange by trading volume, has received two licenses to offer its services in El Salvador, the first country to adopt Bitcoin as legal tender. The licenses will allow Binance to provide tailor-made products and services to Salvadorans, who can now use Bitcoin alongside the U.S. dollar for everyday transactions.
Not long ago. 🤝🇸🇻 https://t.co/zJk6oyt5A8 pic.twitter.com/xJDaRFYLC5
— CZ 🔶 BNB (@cz_binance) August 8, 2023
According to an announcement on Aug. 8, Binance was granted a Bitcoin Services Provider (BSP) license by the Central Bank of El Salvador and a non-provisional Digital Asset Services Provider (DASP) license by the Salvadoran National Commission of Digital Assets. These licenses are the first of their kind in the country, which passed a historic law in 2021 to make Bitcoin legal tender.
Min Lin: Binance Has Been in Talks With El Salvador for Months
Binance’s head of Latin America, Min Lin, said that the exchange had been working for months to complete the licensing process and comply with the local regulations. He added that Binance was committed to supporting El Salvador’s vision of financial inclusion and innovation through crypto.
Lin said:
“We are honored to be granted this license, as Binance continues to work collaboratively with regulatory agencies around the world to support global standards for the crypto and blockchain industry. This announcement comes after many months of dedication from our team to provide all information and proceed with the necessary due diligence required by the agencies, showcasing our commitment to the Salvadoran market and our users.”
El Salvador’s President Nayib Bukele, who spearheaded the Bitcoin law, has been vocal about the benefits of crypto for his country, which has a large population of unbanked and remittance-dependent citizens. He has also announced plans to build a Bitcoin City powered by geothermal energy from a volcano.
Binance is not the only crypto company that has received a license in El Salvador. In April, Bitfinex Securities El Salvador, a subsidiary of the global exchange Bitfinex, was granted a DASP license by the National Digital Asset Commission. However, Binance is the first to receive both a BSP and a DASP license, which could give it an edge in the emerging market.
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