FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, and Litecoin are seen in front of a displayed Binance logo in this illustration taken, June 28, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
Binance is the first crypto exchange to receive both a Bitcoin Services Provider license (BSP) and a non-provisional Digital Assets Services Provider license (DASP) in El Salvador.
El Salvador is the 18th market license crypto’s largest centralized exchange by market cap.
The country was also the first to approve Bitcoin (BTC) as a legal tender in 2021, making headlines around the globe and drawing scrutiny from regulators like the IMF.
Binance can now offer fully regulated Bitcoin and digital asset services in El Salvador after securing two licenses from the country’s central bank and digital assets regulators.
The company said in an official announcement that it received a Bitcoin Services Provider license (BSP) from the Central Reserve Bank (Banco Central de Reserva) and the first non-provisional Digital Assets Services Provider license (DASP) from the National Commission of Digital Assets (Comisión Nacional de Activos Digitales).
Min Lin, Binance Head of Latin America said both licenses were secured after months of hard work and liaising with local regulators. Indeed, Binance had a presence in El Salvador but only through a third-party entity.
We are grateful to the Central Reserve Bank and the National Commission of Digital Assets. Their blockchain technology adoption has created a thriving sector in El Salvador that proves security and innovation are complementary assets. Now, it joins countries around the world that have granted Binance a regulatory license.
Approval in El Salvador marks the 18th market to welcome Binance and issue a crypto license to the company.
El Salvador’s Nascent Crypto Economy
El Salvador became the first country in the world to approve Bitcoin as a legal tender. At the time, President Nayib Bukele drew scrutiny from international regulators like the IMF for legalizing the so-called digital gold.
Two years later, President Bukele signed the Digital Securities Act into law, further solidifying his administration’s crypto-savvy approach. The country is also exploring volcanic energy as a power source for Bitcoin mining.
Bitfinex Securities – an exchange offering tokenized real-world assets (RWAs) – received a provisional Digital Assets Services Provider license in April as the country continues to open its borders for crypto businesses.