Binance has received two licenses in El Salvador, allowing it to provide Bitcoin services and digital asset services to residents. The exchange has been granted a Bitcoin Services Provider license and a Digital Assets Services Provider license (DASP).
The world’s biggest crypto exchange will now be able to offer custody services, process crypto payments, issue digital wallets and run a digital asset exchange in the country.
El Salvador’s Crypto-Friendly Reputation
The Central American state, led by President Nayib Bukele, has a reputation for accommodating crypto. Bitcoin (BTC) became legal tender in September 2021 and earlier this year started to issue Bitcoin-backed bonds. It also launched the National Commission of Digital Assets (NCDA) to take charge of crypto matters.
Binance’s general manager for the region, Daniel Acosta, said the licenses “allow Binance to expand the products and services offered including options tailored to the needs of our customers in El Salvador.”
The exchange’s Head of Latin America, Min Lin, said:
“We are grateful to the Central Reserve Bank and the National Commission of Digital Assets. Their blockchain technology adoption has created a thriving sector in El Salvador that proves security and innovation are complementary assets. Now, it joins countries around the world that have granted Binance a regulatory license.”
El Salvador’s Bitcoin experiment has been inconsistent, but tourism has increased by 30% since its legalization, a move intentionally strategized by the government. However, Bitcoin’s volatility has also hit the country’s coffers hard.
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The IMF has criticized El Salvador’s decision to adopt BTC as a legal tender several times in the past. The authority has asked El Salvador to drop Bitcoin as a currency, though President Nayib Bukele has stuck to his guns.
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