Key takeaways:
- Binance has announced that it has received authorization to offer services to people living in El Salvador.
- The head of Binance’s Latin American operations claimed that the exchange’s licensing procedure had taken “many months” to complete.
The leading cryptocurrency exchange, Binance, has announced that it has received authorization to offer services to people living in El Salvador.
Binance announced on August 8 that the National Commission of Digital Assets of El Salvador had granted it a non-provisional license as a Digital Assets Services Provider and that the Central Reserve Bank had approved the exchange’s application for a license as a Bitcoin Services Provider.
Binance will be able to provide “tailor-made products and services” related to cryptocurrencies in the country of Latin America thanks to the regulatory license.
Min Lin, the head of Binance’s Latin American operations, claimed that the exchange’s licensing procedure had taken “many months” to complete. Following the approval of the nation’s Bitcoin Law and encouragement from the cryptocurrency-friendly President Nayib Bukele, El Salvador accepted Bitcoin as legal tender alongside the US dollar in 2021.
Bitfinex Securities El Salvador received a license to operate as a digital asset service provider from El Salvador’s National Digital Asset Commission in April. The business typically runs without much help from its global exchange.
Binance, an international cryptocurrency exchange, and its affiliates have a regulatory license to provide services in numerous nations. The company declared on August 1 that it had opened a branch in Japan and that the Virtual Asset Regulatory Authority of the emirate had granted its subsidiary in Dubai a license.
But in the US, politicians and authorities are looking closely at the exchange. The Commodity Futures Trading Commission (CFTC) targeted the exchange and its CEO, Changpeng Zhao, in March for allegedly breaking trading and derivatives laws, and the US Securities and Exchange Commission (SEC) initiated a lawsuit against Binance in June for allegedly offering unregistered securities and conducting business illegally.
Binance has taken a proactive stance by providing its most current reserves report in response to recent concerns regarding the transparency of cryptocurrency exchanges’ reserves. User balances for ETH and BNB decreased by 2.3% and 1.4%, totaling 95,000 ETH and 423,000 BNB, respectively.
