Binance Secures Highest Crypto Provider License in El Salvador
Binance El Salvador License
Key Points:
- Binance has been awarded a BSP license and a DASP license by El Salvador.
- Binance is the first crypto exchange to get authorization from the NCDA in the nation.
- The exchange has seen regulatory difficulties in both the U.S and Europe, so this is welcome.
Binance has been awarded a Bitcoin Services Provider (BSP) license and a Digital Assets Services Provider (DASP) license by El Salvador’s central bank and cryptocurrency regulator. The exchange may now provide custodial services, process crypto payments, distribute digital wallets, and run an exchange platform for digital assets in the nation according to its newly acquired licenses.
First in El Salvador
In September of 2021, El Salvador took a stand in favor of crypto when it recognized Bitcoin as legal cash. President Bukele of El Salvador signed a new Digital Securities Law in January, which legalized Bitcoin-backed government bonds and established the National Commission on Digital Assets (NCDA) to regulate cryptocurrencies.
Binance is the first cryptocurrency exchange to get authorization from the NCDA to do business in the nation. Bitfinex Securities’ proposal to begin trading tokenized equities and yield-bearing assets including government bonds was authorized by El Salvador’s authorities in April 2023. Binance has seen regulatory difficulties in both the United States and Europe, so the good news from El Salvador is welcome.
Regulatory Struggle for Binance
The U.S. Securities and Exchange Commission (SEC) has filed charges against Binance and its CEO Changpeng Zhao, alleging that the pair broke securities laws and engaged in unethical trading practices.
There have been regulatory issues with the exchange in Europe as well. Binance was fined $3.6 million by the Dutch central bank for operating unlawfully in the country. Binance has also been refused a business license in Germany, Austria, and the Netherlands.
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