- Binance has secured approvals and registrations in 18 markets worldwide, becoming the first fully licensed crypto exchange in El Salvador.
- The exchange boasts a Bitcoin Services Provider license and the first non-provisional Digital Assets Services Provider license.
- These certifications allow Binance to offer tailor-made products and services in the country.
Binance, the largest cryptocurrency exchange by trading volume, is set to enjoy operational freedom in President Nayib Bukele’s country, El Salvador, after securing crucial licensure that will allow for customized products and services offered to the El Salvadorian citizenry.
Binance Exchange has secured two crucial licenses in El Salvador, a Bitcoin Services Provider (BSP) license and the first non-provisional Digital Assets Services Provider (DASP) license. The two authorizations, which make Binance a fully licensed exchange in El Salvador, also serve as a green light to offer “tailor-made products and services in the country.”
The BSP was issued by the Central Reserve Bank (Banco Central de Reserva), while the DASP was issued by the National Commission of Digital Assets (Comisión Nacional de Activos Digitales).
With this, Binance’s list of approvals and therefore registrations totals 18 markets across the globe, which is not a mean feat considering there is no other exchange that has achieved this much in authorizations. France, Italy, Spain, Sweden and Dubai are among the countries where the exchange is now registered.
Citing Binance’s Head of Latin America, Min Lin on the matter:
…Binance continues to work collaboratively with regulatory agencies around the world to support global standards for the crypto and blockchain industry.
Nevertheless, while the exchange is poised to enjoy operational freedom in the Central American country, it remains under the short leash of rough regulatory authorities in the United States. This comes as the US Securities and Exchange Commission (SEC) is still pursuing the exchange and its CEO, Changpeng Zhao, for alleged securities laws violations, labeling Binance Coin (BNB) and Binance USD (BUSD) as securities.
The financial regulator is also after Binance and its CEO for commingling and diverting billions of Dollars of customer funds to a third-party entity owned by CZ.
Besides the SEC, the US Commodities Futures Trading Commission (CFTC) is also cracking down on Binance on allegations of offering unregistered crypto derivatives products and directing US customers to evade compliance controls using VPNs among others.
Notably, Binance has dismissed both claims, citing FUD, but continues to operate under the short leash of both regulators. More recently, the US Depart of Justice (DOJ) is deliberating fraud charges against the exchange but chooses to tread carefully on the matter in effort to protect customers.
U.S. PROSECUTORS WORRY BINANCE CHARGES COULD CAUSE RUN ON EXCHANGE - SEMAFOR
— *Walter Bloomberg (@DeItaone) August 2, 2023
Binance General Manager for Colombia, Daniel Acosta, Central America and Caribbean, has also lauded the development, describing it as an opportunity for collaboration with the El Salvadorian government toward crypto adoption, fostering financial inclusion, innovation and ensuring customer protection.
BNB price festers as Binance makes global strides
Binance Coin (BNB) remains stuck within a range despite the leading crypto exchange making international strides. The altcoin is testing the 50-day Exponential Moving Average (EMA) at $247.9 as bulls push to record more gains. An increase in seller momentum above current levels could see BNB price tag the $256.5 resistance level, and in a highly bullish case, confront the 100-day EMA at $261.8.
The Relative Strength Index (RSI) is edging north, suggesting rising momentum. Similarly, the histograms of the Awesome Oscillator (AO) are in the positive zone, indicating bulls are leading the market.
BNB/USDT 1-day chart
On the flip side, if the aforementioned play fails, BNB price could be rejected from the 50-day EMA at $247.9, pulling south toward the $231.2 before collecting the liquidity underneath.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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