Binance announced its official entry into El Salvador, which will become the first country in the world to legalize Bitcoin in 2021. The U.S.-based cryptocurrency exchange has been granted all operating licenses in the Central American country, said Tuesday. Accordingly, Binance claims to be the first fully licensed cryptocurrency exchange in El Salvador. This gives Binance an advantage over other cryptocurrency exchanges operating in the country, which only offer select services.
Authorities in El Salvador have issued two licenses to Binance — a bitcoin service provider license and the first non-temporary digital asset service provider license.
The licenses were approved by the Central Reserve Bank of El Salvador and the National Digital Assets Council.
Daniel Acosta, Binance General Manager for Colombia, Central America and the Caribbean, said: “This is also a great opportunity to work closely with government authorities to support the country’s adoption of crypto assets, promote financial inclusion, innovate and Ensure customer protection.” commented on the matter.
In September 2021, El Salvador will become the first country in the world to legalize Bitcoin. El Salvador’s President Nayib Bukele supports Bitcoin and has been a vocal advocate of how the digital asset can bring independence and decentralization to the existing global financial system.
In March 2022, Bukele met Binance CEO Changpeng Zhao for the first time. At that time, Zhao was visiting El Salvador for the first time.
Since Bitcoin is legal tender in El Salvador, Binance can increase its user base, while nationals of the island nation can increase their experience in cryptocurrency trading.
“The blockchain technology they employ has created a thriving industry in El Salvador, proving that security and innovation are complementary assets. After months of hard work by our team, providing all information and conducting the necessary due diligence required by the institution, we publish We have received this news.” Lin Min, head of Binance Latin America, said.
While El Salvador may soon have a tax-free, blockchain-powered bitcoin city, the country legalized volcanic bitcoin bonds in January. This allows nationals to enter into bonds, and any appreciation in the value of Bitcoin will then be shared with bondholders.
Regarding Binance’s entry into El Salvador, Zhao made the announcement on X (formerly Twitter).
#Binance Delighted to announce that it has become the first fully licensed cryptocurrency exchange in El Salvador. :flag-sv:
Let’s keep making cryptocurrencies more accessible.https://t.co/kz91z2LAcL
— CZ :large_orange_diamond: Binance (@cz_binance) August 8, 2023
The exchange has been under investigation by the US Securities and Exchange Commission (SEC) for several months. Both Binance and Coinbase have come under investigation for their business practices.
El Salvador, meanwhile, became the 19th country to grant Binance a license to operate. Other countries that have done so include France, Italy, Spain, Sweden and Dubai.
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