Global cryptocurrency exchange Binance has recently achieved a significant milestone by securing licensing to offer its services to the residents of El Salvador. This development comes as the country continues to embrace cryptocurrency and blockchain technology.
In an official announcement on August 8th, Binance revealed that it had successfully obtained regulatory approval from the Central Reserve Bank of El Salvador for a Bitcoin Services Provider license.
Additionally, the National Commission of Digital Assets in the country granted Binance a non-provisional Digital Assets Services Provider license. These licenses will enable Binance to provide a range of tailored cryptocurrency products and services to the people of El Salvador.
The head of Binance’s Latin American division, Min Lin, noted that the process of obtaining these licenses had been a meticulous one, spanning several months. The effort underscores Binance’s commitment to operating within regulatory frameworks and contributing to the growth of the cryptocurrency ecosystem in the region.
El Salvador made history in 2021 by becoming the first country to recognize Bitcoin as a legal tender alongside the US dollar. This move was championed by President Nayib Bukele and accompanied by the passage of the groundbreaking Bitcoin Law. The law not only granted legal status to Bitcoin but also paved the way for the integration of cryptocurrency into the country’s financial landscape.
Binance’s accomplishments add to its already impressive track record of obtaining regulatory approval in various countries. The exchange and its subsidiaries have been expanding their presence globally. Earlier this year, Binance introduced a Japan-based arm and secured a license from Dubai’s Virtual Asset Regulatory Authority. These moves signify the company’s determination to operate in different regulatory environments while offering innovative cryptocurrency services.
However, it’s worth noting that Binance has faced challenges in the United States. The US Securities and Exchange Commission (SEC) filed a lawsuit against the exchange in June, alleging the offering of unregistered securities and illegal operations. Furthermore, the Commodity Futures Trading Commission (CFTC) targeted both Binance and its CEO, Changpeng Zhao, in March for purportedly violating trading and derivatives regulations.