An official report issued , on August 8, revealed that El Salvador’s central bank had approved Binance’s license to operate as a regulated entity. The report illustrated that Binance obtained a Bitcoin Service Provider License (BSP) and Digital Asset Service Provider (DASP).
The approval of the Binance license grants the crypto exchange the authority to provide custodial services and facilitate crypto payments. Soon the Binance team will officially offer digital wallets and exchange services to Salvadorians.
Binance Expands to El Salvador
Remarkably, the licensing came when El Salvador sought to create a friendly environment for crypto and attract key investors to the region. A statement issued by Binance Central America general manager Daniel Acosta revealed that licensing enables the crypto exchange to broaden its geographic presence to the region.
Acosta was pleased to announce the regulatory approval challenges Binance to tailor its products and services according to the needs of the Salvadorians.
In support of Acosta’s statement, Binance’s head of Latin America, Min Lin, confessed that the licensing process was thorough. The executive added that securing the license took several months.
Irrespective of this, Salvadorian president Nayib Bukele has been pushing for a crypto-friendly country. President Bukele has greenlighted several policies that will support the growth of the crypto sector.
In early January, President Bukele signed the Digital Securities bill into law, which outlines the legal framework for launching the government bond centered on the Bitcoin network. Subsequently, the president led Salvadorian public agencies to establish a crypto regulatory agency dubbed the National Commission of Digital Assets (NCDA).
Binance ranks second crypto firm to receive digital assets license under the NCDA regulatory regime. In April, Bitfinex received the license approval to offer trading tokenized equities to Salvadorian residents. Besides Binance, the suitability of the El Salvador crypto market continues to attract key players from across the globe.
Binance Faces Charges
Reportedly the Binance expansion to Latin America came when the crypto exchange faced potential action from different regulators. Last month the US Securities and Exchange (SEC) filed a lawsuit against Binance and the chief executive, Changpeng Zhao, for violating the securities regulations.
According to SEC, the Binance top executives, led by the CEO, misappropriated company funds aiming at enriching themselves.
Consecutively Binance has been battling intensive regulatory pressure in different jurisdictions. As the legal action continued, the troubled crypto exchange fled from the Netherlands, Germany, and Austria to pursue other suitable markets overseas.
Despite the legal charges facing Binance, the crypto exchange has invested heavily in broadening its market presence to maintain its position in the crypto space. A few days ago, Binance secured a crypto asset provider license from UAE regulators.
With the approval of the UAE license, the Binance team will offer crypto brokerage and dealership services to qualified institutional investors.
