Binance Gets Fully Licenced in Pro-Bitcoin El Salvador Amid Tussle with US SEC

Binance has claimed that it is the first fully licenced crypto exchange to exist in El Salvador.

Written by Radhika Parashar, Edited by Richa Sharma | Updated: 9 August 2023 21:33 IST

Binance Gets Fully Licenced in Pro-Bitcoin El Salvador Amid Tussle with US SEC

Photo Credit: Binance

El Salvador legalised Bitcoin in September 2021 and became the first nation to do so

Highlights

Binance now has Bitcoin Services Provider licence in El Salvador
The exchange also has Digital Assets Services Provider licence
Binance CEO met Salvadoran president last year

Binance has announced its official entry into El Salvador, which became the first nation in the world to legalise Bitcoin in 2021. The US-based crypto exchange has received all operational licences in the central American nation, it said on Tuesday. With this, Binance has claimed to be the first fully licenced crypto exchange to exist in El Salvador. This gives Binance an edge over other crypto exchanges operating in the country, as others only offer only select services.

The authorities of El Salvador have granted two licences to Binance — the Bitcoin Services Provider licence and the first non-provisional Digital Assets Services Provider licence.

The licences were approved by the Salvadoran Central Reserve Bank and the National Commission of Digital Assets.

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“It is also a great opportunity to collaborate closely with government authorities to support the adoption of crypto assets in the country, foster financial inclusion, innovation and ensure customer protection,” said Daniel Acosta, Binance General Manager for Colombia, Central America and Caribbean, commenting on the matter.

In September 2021, El Salvador became the first nation in the world to legalise Bitcoin. Salvadoran President Nayib Bukele is pro-Bitcoin and has been advocating how the digital asset could bring independence and decentralisation to existing global financial systems.

In March 2022, Bukele first met Binance chief Changpeng Zhao. At the time, Zhao was visiting El Salvador for the first time.

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Since Bitcoin is a legal tender in El Salvador, Binance could increase its userbase and the nationals of the island nation could increase their experience with crypto trading.

“Their blockchain technology adoption has created a thriving sector in El Salvador that proves security and innovation are complementary assets. This announcement comes after many months of dedication from our team to provide all information and proceed with the necessary due diligence required by the agencies,” said Min Lin, Binance Head of Latin America.

While El Salvador may soon house a tax-free, blockchain-powered Bitcoin City, the country in January this year legalised Volcanic BTC Bonds. This allows nationals to enter the bond and then any appreciation in Bitcoin's values are shared with the bond holders.

About Binance's entry into El Salvador, Zhao posted the announcement on X, formerly Twitter.

#Binance is pleased to announce that it has become the first fully licensed crypto exchange in El Salvador.:flag-sv:

Let's keep making crypto more accessible.https://t.co/kz91z2LAcL
— CZ :large_orange_diamond: Binance (@cz_binance) August 8, 2023

The exchange has been under investigation by the SEC in the US for months now. Binance, alongside Coinbase, are being probed over their business methods.

El Salvador, meanwhile, has become the 19th nation to bestow Binance with operational licences. Other nations to have done so include France, Italy, Spain, Sweden, and Dubai.

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Further reading: Cryptocurrency, Binance, El Salvador, Changpeng Zhao, Nayib Bukele

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More