Binance Secures Crypto Exchange License in El Salvador

The industry's largest exchange Binance has secured two licenses for conducting crypto-related business in El Salvador.

2 min read

Aug 8, 2023

Today, El Salvador's central bank and crypto regulator granted Binance a Bitcoin Services Provider License (BSP) and Digital Assets Services Provider license (DASP)

The new licenses now let the exchange offer custodial services, process crypto payments, provide digital wallets, and operate a digital asset exchange platform in the country.

Daniel Acosta, the firm's general manager for Colombia, Central America, and the Caribbean, said that the “licenses allow Binance to expand the products and services offered including options tailored to the needs of our customers in El Salvador."

El Salvador has adopted a pro-crypto stance having declared Bitcoin legal tender in September 2021. In January this year, El Salvador's President Bukele passed a new Digital Securities Law, launching Bitcoin-backed government bonds and creating the National Commission of Digital Assets (NCDA) for overseeing crypto regulation.

Binance is the first crypto exchange approved by the NCDA to operate an exchange within the country.

In April 2023, El Salvador’s regulators approved Bitfinex Securities' application for trading tokenized equities and yield-bearing assets like government bonds.

The positive regulator news in El Salvador comes on the back of various regulatory setbacks for Binance in the U.S. and Europe.

In the U.S., the Securities and Exchange Commission (SEC) has charged Binance and its CEO, Changpeng "CZ" Zhao, with breaking securities rules and allegedly using unethical trading practices to enrich “themselves by billions of dollars while placing investors’ assets at significant risk.”

In Europe, the exchange has also faced regulatory challenges. The Dutch central bank fined Binance $3.6 million for operating illegally in the Netherlands. Germany, Austria, and the Netherlands have all denied Binance an operating license as well.

Despite these setbacks, Binance has continued to seek regulatory approval around the world.

Adding El Salvador’s approval, the company has obtained licenses in 18 markets, including France, Italy, Spain, Sweden, and Dubai.

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