IMPORTANT POINTS:
- Binance obtains a double license in El Salvador: The platform manages to be the “first fully licensed crypto exchange” in the country with the BSP and DASP licenses.
- El Salvador, pioneer in cryptocurrencies: In 2021, it became the first country to recognize Bitcoin as a legal currency and recently established a regulatory framework for other digital assets.
- Binance Global Expansion: With the Salvadoran licenses, the company now has a regulated presence in 18 markets, outperforming other cryptocurrency exchanges.
The renowned cryptocurrency exchange platform, Binance, has reached an important milestone in El Salvador by acquiring two essential licenses, positioning itself as the “first fully licensed crypto exchange” in this Central American country.
These distinctions, the Bitcoin Service Provider License (BSP) granted by the Central Reserve Bank of El Salvador and the first non-provisional Digital Asset Service Provider license (DASP) granted by the National Digital Assets Commission of El Salvador, give Binance the endorsement to offer a variety of specialized products and services in the nation. The company revealed this advance last Tuesday.
Although Binance already had operations in Salvadoran territory, it did so “only through an exchange abroad,” a representative of the firm told The Block. However, with these new accreditations, Binance is now in a position to expand and diversify its service offering in the country.
In the words of Daniel Acosta, general director for Colombia, Central America and the Caribbean at Binance: “These licenses open the door for us to diversify and adapt our products and services to the particular needs of users in El Salvador. In addition, it gives us the unique opportunity to work hand-in-hand with local authorities, driving the adoption of cryptocurrencies and promoting innovation and financial security in the region.”
Cryptocurrency adoption in El Salvador
El Salvador has been a pioneer in cryptocurrency adoption. In 2021, it stood out as the first country to give Bitcoin legal currency status. More recently, it introduced a law that facilitates the issuance of other digital assets, thus outlining a solid regulatory framework for altcoins and companies that wish to venture into this area.
After receiving these licenses in El Salvador, Binance expands its regulated presence to 18 international markets, which include nations such as France, Italy, Spain, Sweden and Dubai. This extensive network, according to Binance itself, surpasses any other cryptocurrency exchange in terms of global reach.
Despite facing regulatory challenges in territories such as the United States, Binance remains firm in its leadership in the sector, marking a recent milestone by exceeding 150 million registered users worldwide.
