Binance receives licenses to offer crypto services in El Salvador

Global cryptocurrency exchange Binance has reported being granted licensing to provide services to residents of El Salvador.

In an Aug. 8 announcement, Binance said El Salvador’s Central Reserve Bank had approved the exchange’s application for a Bitcoin Services Provider license and the country’s National Commission of Digital Assets granted it a non-provisional Digital Assets Services Provider license. The regulatory approval will allow Binance to offer “tailor-made products and services” related to crypto in the Latin American nation.

Binance’s head of Latin America, Min Lin, said it had taken “many months” for the exchange to complete the licensing process. El Salvador recognized Bitcoin (BTC) as legal tender alongside the U.S. dollar in 2021 following a push from crypto-friendly President Nayib Bukele and the passage of the country’s Bitcoin Law.

In April, El Salvador’s National Digital Asset Commission granted Bitfinex Securities El Salvador a digital asset service provider license. The firm largely functions independently from its global exchange.

Related: US lawmakers target perceived risks of crypto adoption in El Salvador with reintroduced bill

A global crypto exchange, Binance and its subsidiaries have received regulatory approval to offer services in many countries. On Aug. 1, the firm announced it had launched a Japan-based arm and its Dubai-based subsidiary received a license from the emirate’s Virtual Asset Regulatory Authority in July.

In the United States, however, the exchange faces scrutiny from regulators and lawmakers. The U.S. Securities and Exchange Commission filed a lawsuit against Binance in June for allegedly offering unregistered securities and operating illegally, and the Commodity Futures Trading Commission targeted the exchange and CEO Changpeng Zhao in March for allegedly violating trading and derivatives regulations.

Magazine: What it’s actually like to use Bitcoin in El Salvador

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