Binance’s Global Odyssey Amid Regulatory Waves

From El Salvador's Bitcoin Adoption to Volcano Bonds: Exploring Binance's Bold Moves and the Future of Cryptocurrency Regulation

For some time now, Binance has been facing skepticism if not hostility from many countries, with the United States being the forefront among them.

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As we know, it is under investigation by U.S. authorities (Department of Justice, Securities and Exchange Commission, Commodity Futures Trading Commission), leading to many of its executives leaving out of fear of potential criminal charges.

However, it’s quite difficult to halt a business that operates successfully in the digital globalized world. When the stakes are high, there’s always an avenue. Other countries will be interested in hosting companies engaged in cutting-edge technologies like the crypto space.

Indeed, alternatives have been found. El Salvador is one such country. Since 2021, it has adopted Bitcoin as an official currency alongside the U.S. dollar. It’s no wonder that Binance applied for and obtained two licenses there.

One from the Central Reserve Bank of El Salvador (Banco Central de Reserva) for Bitcoin Services (BSP) and the second from the National Commission for Digital Property.

Binance has now been granted licenses from 18 markets, according to the company’s announcement, including France, Italy, Sweden, and Dubai.

However, the Binance announcement contains a somewhat insignificant mistake. They stated that they are the first cryptocurrency exchange to be licensed, but in fact, Bitfinex was the first.

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In fact, Bitfinex has taken on the role of advisor in regards to the issuance of “Volcano Bonds” that the state of El Salvador intends to offer to fund its plans for creating a Bitcoin city.

This area is specially designed and adapted for industry companies, which will enjoy zero taxation. As we’ve mentioned, in January, the Legislative Assembly of El Salvador passed a law regulating digital titles and the issuance of ten-year bonds using Bitcoin technology.

Why is this so important? Because, for the first time, a government of an official state is bypassing the traditional banking system by offering its bonds directly to investors.

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The funds raised will go directly to the state treasury, without any intermediaries, without any banking institution taking a part of the money. Not a penny. And, of course, without any external factor, like the IMF, dictating how the government should manage the funds.

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