- On August 8th, Binance announced that it has been granted the Bitcoin Service Provider license by the Central Reserve Bank of El Salvador.
- By obtaining a temporary license in Dubai, Binance became the leading cryptocurrency exchange to receive such a license in the region. It is important to note that these achievements represent regulatory successes.
- At the time of writing this article, data from DefiLlama showed a decrease in the Total Value Locked (TVL) on the Binance Smart Chain. The TVL, which surpassed $5 billion in February, has since shown a downward trend.
Having faced regulatory issues in the US and Europe, Binance has managed to obtain a full license in El Salvador; What does this mean for the exchange?
Binance Successfully Obtains License in El Salvador
Binance has obtained a license to operate in El Salvador. Considering the regulatory challenges it has faced in the US and certain European regions, this license could potentially provide relief for the exchange.
On August 8th, Binance announced that it has been granted the Bitcoin Service Provider license by the Central Reserve Bank of El Salvador. Additionally, the exchange has also obtained a non-temporary Digital Assets Service Provider license from the National Digital Assets Commission. This makes the exchange the country’s first fully licensed cryptocurrency exchange.
Notably, this development coincided with the launch of the exchange in Japan in the same month. Furthermore, by obtaining a temporary license in Dubai, Binance became the leading cryptocurrency exchange to receive such a license in the region. However, it is important to note that these achievements represent regulatory successes. Binance had announced a few months ago that it would terminate its operations in the Netherlands due to regulatory complications.
Similarly, there were reports of regulatory issues in Belgium and a decision was made to cancel its registration in the UK. These regulatory challenges in Europe further complicated the ongoing issues in the US.
What could this mean for Binance?
Binance is currently the largest exchange globally in terms of its wide user base and daily trading volume. Expanding its range of services could trigger further growth for the exchange and impact its key performance indicators.
At the time of writing this article, data from DefiLlama showed a decrease in the Total Value Locked (TVL) on the Binance Smart Chain. The TVL, which surpassed $5 billion in February, has since shown a downward trend and is currently at approximately $3.2 billion.
In addition, the market capitalization of stablecoins has significantly decreased throughout the year. The stablecoin market capitalization started the year with a value of over $9 billion but has now dropped to approximately $5.2 billion.
Furthermore, the trading volume has also decreased recently and was measured at approximately $261 million at the time of writing this article. Considering these developments, it is worth considering the reaction of Binance Coin (BNB) to recent events.
How did BNB react?
Interestingly, on August 8th, Binance Coin (BNB) experienced a modest increase in value on the daily timeframe chart. This particular chart is noteworthy due to consecutive declines it faced in the days leading up to that date.
At the time of writing this article, BNB is trading at approximately $244.6 and shows a slight increase in price. Additionally, there is a slight bullish sentiment observed in the Moving Average Convergence Divergence (MACD) indicator. The trend was above the zero line at the time of writing this article.
