Binance, the largest cryptocurrency exchange in the world, was recently granted a Bitcoin Services Provider license (BSP) as well as the first-ever non-provisional Digital Assets Services Provider license (DASP) by El Salvador's central bank and National Commission of Digital Assets, making Binance the first fully licensed crypto exchange in El Salvador, according to a press release. Binance is now registered and approved in 18 markets around the world – more than any other exchange – but it still faces regulatory scrutiny in the U.S.
"We are honored to be granted this license, as Binance continues to work collaboratively with regulatory agencies around the world to support global standards for the crypto and blockchain industry," Min Lin, Binance's head of Latin America, 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."
Daniel Acosta, Binance's general manager for Colombia, Central America and the Caribbean, said licenses allow Binance to work closely with regulators to support innovation and protect users.
“These licenses allow Binance to expand the products and services offered, including options tailored to the needs of our customers in El Salvador," Acosta said. "It is also a great opportunity to collaborate closely with government authorities to support the adoption of crypto assets in the country, foster financial inclusion and innovation and ensure customer protection."
Binance is currently facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) for allegedly offering unregistered securities. Financial analyst Matt Levine wrote in his "Money Stuff" newsletter that the complaint simply accuses Binance of operating a crypto exchange.
"Every crypto exchange in the U.S. is illegal. Just being a crypto exchange in the U.S. is, in the SEC’s eyes, illegal," Levine wrote. He noted that the SEC has claimed that most digital assets qualify as securities.
A June report from Moody's Investors Service warned that failure to advance comprehensive cryptocurrency regulations "could make the United States (AAA stable) comparatively less attractive for both firms and investors, particularly in a context where many other jurisdictions are moving forward with comprehensive rules."
Fifty-three percent of Americans believe “cryptocurrencies are the future of finance,” according to a survey conducted by The Harris Poll last fall. Eighty-one percent of survey respondents said the U.S. needs clearer regulatory guidelines for crypto companies.