Binance gains licences in El Salvador

Binance said it had become the first fully licensed cryptocurrency exchange in El Salvador after receiving approvals from two regulators.

It concerns registration as a Bitcoin Services Provider (BSP) with the Central Reserve Bank and the first permanent Digital Assets Services Provider (DASP) licence from the National Commission on Digital Assets.

“These licenses will allow Binance to expand its range of products and services, including offerings tailored to the needs of customers in El Salvador,” said Daniel Acosta, the company’s general manager for Colombia, Central America and the Caribbean.

In a statement to The Block, a Binance spokesperson said the exchange was already operating in the country, but “only through an offshore platform.”

According to the statement, with registration in El Salvador the exchange will be present on 18 regulated markets, including France, Italy, Spain, Sweden and Dubai.

Earlier reports indicated that Binance withdrew applications for licences in the United Kingdom, Germany, Austria, Cyprus and announced its exit from the Netherlands. The Belgian Financial Services and Markets Authority ordered the exchange to halt all activity.

As reported, in September 2021 El Salvador became the first country in the world to recognise Bitcoin as legal tender.

In April 2023, a Bitfinex subsidiary obtained a DASP licence in the country.