Binance exchange to enjoy operational freedom in El Salvador despite short regulatory leash in the US

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.

Also Read: Binance approving SHIB as a collateralized asset causes 10 billion in open interest as Shiba Inu price rises

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. 

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.