Key Points
- Binance has confirmed that it has become the first regulated crypto exchange in El Salvador.
- The development pushes El Salvador’s Bitcoin vision further, as investors will have a chance to trade more cryptocurrencies.
Binance has become the first regulated crypto exchange in El Salvador after securing a license from the country’s regulators in an effort that seeks to propel the country to more crypto adoption. This development pushes El Salvador’s Bitcoin “love story” forwards.
Binance is now the first regulated crypto exchange in El Salvador
An August 8th report from Binance confirms that the exchange is now the first regulated crypto exchange in El Salvador after securing both Bitcoin Services Provider License (BSP) from the Central Reserve Bank and the first non-provisional Digital Assets Services Provider License from the National Commission of Digital Assets.
Binance has secured this win in a series of other wins from countries warming up to the crypto industry. However, it still needs help from other regulators, like in the UK and the US. The UK FCA recently shut down one of its subsidiaries; however, the company said that it did not expect its services to be impacted as it was not serving UK customers in the first place.
In the US, the company’s Binance.US platform is under investigation and a court battle with the US SEC that terms it as a securities broker and alleges it mixes its funds with the international exchange, which puts US citizens’ investments at risk. However, neither of the allegations has been proven though it is expected the case might end up in a settlement between the exchange and the US SEC.
El Salvador, Bitcoin love story continues….
El Salvador has had one of the most interesting love affairs with Bitcoin adoption. It approved using Bitcoin as a legal tender ditching the US dollar in 2021. It then invested heavily in the coin and issued handouts to its citizens to incentivize its adoption.
The nation’s citizens cried foul when the systems did not function optimally. President Nayib Bukele was also criticized as his Bitcoin investments were losing value in the face of the 2022 crypto bear market. The World Bank and the IMF even criticized the decision to use Bitcoin as a legal tender, saying it would cut loans and other fundings, citing risky monetary policies.
However, El Salvador did not get shaken; it has managed to release its volcano bitcoin bonds which have had a massive market impact and stabilized its usage of Bitcoin as legal tender. The country also profits from its Bitcoin holdings.
As such Bitcoins’ “hottest romantic affair yet” continues via the approval of the first regulated crypto exchange in El Salvador.
Keep watching Fintech Express for updates on this and other Fintech-related developments.