Binance secures license in El Salvador, here’s what it means for the exchange
- Binance became the first fully licensed crypto exchange in El Salvador.
- BNB reacted slightly to the development with an over 1% price increase.
Binance has received a license to operate in El Salvador. Given the regulatory challenges it has encountered in the United States and certain regions of Europe, this license could potentially provide some relief for the exchange. How might this licensure enhance the exchange’s operations and the value of BNB?
Read Binance (BNB) Price Prediction 2023-24
Binance gets a regulatory win
On 8 August, Binance announced that the Central Reserve Bank of El Salvador has approved the exchange to obtain a Bitcoin Services Provider license. Additionally, the exchange was granted a non-provisional Digital Assets Services Provider license by the National Commission of Digital Assets.
This made the exchange the first fully licensed crypto exchange in the country.
Notably, this development coincided with Binance’s launch in Japan in the same month. Furthermore, Binance achieved another significant milestone by securing a provisional license in Dubai, marking it the pioneer crypto exchange to attain such a license in the region.
However, it’s important to note that while these achievements represent regulatory successes, Binance has encountered its fair share of regulatory challenges. Several months prior, the exchange had announced the winding down of its operations in the Netherlands due to regulatory complications.
Likewise, there were reports of regulatory issues in Belgium and the decision to cancel its registration in the UK. These regulatory challenges in Europe compounded the ongoing issues the exchange was already dealing with in the United States.
What this could mean for Binance
Binance is currently the largest exchange globally due to its extensive user base and the substantial volume of transactions it handles daily. Expanding the range of services, it offers could potentially catalyze further growth for the exchange and influence its key performance indicators.
As of this writing, data from DefiLlama indicated a decrease in the Total Value Locked (TVL) on the Binance Smart Chain. Following its peak of over $5 billion in February, a downward trend became evident, with the current TVL at approximately $3.2 billion.
Additionally, examining its stablecoin market capitalization unveiled a notable decline throughout the year. The stablecoin market cap commenced the year at over $9 billion but has since now dwindled to around $5.2 billion.
Concurrently, the trading volume has also experienced a recent reduction, measuring around $261 million as of this writing.
Given these developments, it’s relevant to ponder Binance Coin’s (BNB) reaction to this evolving landscape.
How much are 1,10,100 BNBs worth today
How BNB reacted
Interestingly, on 8 August, Binance Coin (BNB) experienced a modest increase in its value, as indicated by its daily timeframe chart. This particular chart stands out due to the successive decrease the coin encountered in the days leading up to that date.
As of this writing, BNB was trading at approximately $245.2, with a slight uptick in price evident. Moreover, there appeared to be a mild bullish sentiment on the Moving Average Convergence Divergence (MACD) indicator. Its trend was positioned above the zero line as of this writing.