Binance has obtained two licenses in El Salvador from the country’s central bank and the commission in charge of digital assets. The acquisition of the additional licenses brings the total number of countries acknowledging the cryptocurrency exchange to 18, Binance said in a statement today (Tuesday).
The Central Bank of El Salvador awarded Binance a Bitcoin Services Provider (BSP) license, while the Salvadoran National Commission for Digital Assets issued the exchange a non-provisional Digital Services Provider (DASP) license, the company said.
Binance Expands Crypto Services
Commenting on the approval of the licences, Daniel Acosta, Binance’s General Manager for Columbia, Central America, and the Caribbean, said: "These licenses allow Binance to expand the products and services offered including options tailored to the needs of our customers in El Salvador. It is also a great opportunity to collaborate closely with governmental authorities to support the adoption of crypto assets in the country, foster financial inclusion, innovation, and ensure customer protection."
In April, El Salvador granted Bitfinex the country’s first license for digital asset services, the company announced. The license was issued to Bitfinex Securities and allowed it to offer tokenized securities in the Central American nation. During the announcement, Bitfinex said the license would enable it to raise capital through tokenized securities.
El Salvador’s Crypto Adoption
El Salvador became the first country to make Bitcoin legal tender in 2021. The digital asset was promoted by the country’s President Nayib Bukele as a solution to making banking easy for the Salvadorans. Although the step attracted criticism from the IMF because of the volatility of Bitcoin, El Salvador unveiled plans to establish laws governing the sector.
In January, Reuters reported that El Salvador had passed a bill for the regulations of the issuance of other digital currencies besides Bitcoin. Dubbed the Digital Asset Securities Law (DASL), the legislation reportedly aims to attract foreign investors and create financial opportunities in the country.
Besides that, the new law governs the issuance of Bitcoin-backed bonds, also known as 'Volcano Bonds'. The bonds were announced by the Salvadoran government in 2021 and allow for the construction of a Bitcoin city in the country.
This article was written by Jared Kirui at www.financemagnates.com.
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