Binance, a global giant in the cryptocurrency arena, recently secured two crucial licenses from El Salvador’s central bank and its crypto regulatory body. This move permits the exchange to offer a range of crypto-related services, such as custodial functions, digital wallet provision, crypto payment processing, and the operation of a digital asset trading platform within the nation.
El Salvador’s Pro-Crypto Movements
Since El Salvador officially accepted Bitcoin as legal tender in September 2021, the country’s position on cryptocurrencies has been quite favorable. Earlier this year, under President Bukele’s leadership, the nation passed the Digital Securities Law. This law initiated the issuance of Bitcoin-backed government bonds and led to the creation of the National Commission of Digital Assets (NCDA) to oversee crypto-related matters. Notably, Binance stands out as the first crypto exchange to gain NCDA’s nod for in-country operations. Moreover, just a few months ago, El Salvador’s regulators also gave Bitfinex Securities a thumbs up for trading tokenized equities and assets tied to government bonds.
Binance’s Global Quest for Regulatory Approval
Despite its victory in El Salvador, Binance has faced some hiccups in its international endeavors. In the United States, the Securities and Exchange Commission (SEC) has slapped Binance and its CEO, Changpeng “CZ” Zhao, with accusations of violating securities regulations. They allege that Binance engaged in questionable trading practices, endangering investor assets while enriching the company by billions.
Additionally, in Europe, Binance’s journey hasn’t been smooth either. The Dutch regulators imposed a $3.6 million fine on the company for operating without the requisite permissions. The regulatory authorities in Germany, Austria, and the Netherlands have declined Binance’s application for an operating license. But undeterred by these challenges, Binance has been actively seeking regulatory blessings globally. With El Salvador’s endorsement, the company boasts licenses in 18 regions, which include prominent markets like France, Italy, Spain, Sweden, and Dubai.
