Binance, one of the world‘s most popular cryptocurrency exchange platforms, has announced its partnership with DitoBanx in El Salvador. The collaboration aims to facilitate the use of Binance’s wallet for cryptocurrency purchases in the country, where Bitcoin has been recognized as legal tender alongside the US dollar for the past two years.
In an email accessed by EFE, Binance informed its users that they can now buy products and services in El Salvador using their cryptocurrencies through DitoBanx’s point of sale (POS) system. Furthermore, Binance Pay, the platform’s payment option, has been made available for use with local businesses.
DitoBanx, described as the first fintech startup in El Salvador specializing in Bitcoin services, is registered as a Bitcoin service provider with the Central Reserve Bank (BCR) of El Salvador. It is also licensed to issue digital assets, emphasizing the legitimacy of the partnership.
However, it is essential to note that Binance is under investigation in the United States. Last June, the US Securities and Exchange Commission (SEC) filed 13 charges against the company and its founder, Changpeng Zhao. The investigation centers on the cryptocurrency exchange’s activities and has raised concerns over its compliance with regulations.
Coincidentally, Changpeng Zhao had visited El Salvador in March and met with President Nayib Bukele. Notably, the US Department of Justice had requested communication records from Binance regarding Zhao’s visit to the country. The request specifically focused on anti-money laundering policies and any related messages or communications involving the CEO.
This announcement comes as El Salvador recently celebrated the two-year anniversary of the Bitcoin Law, which legalized the use of Bitcoin alongside the US dollar. However, concerns have arisen regarding the potential for irregular financing of electoral campaigns in the upcoming 2024 elections using cryptocurrencies, with the government yet to disclose the sources of funds used.
A survey conducted by the University Institute of Public Opinion of the Central American University (Iudop) in January revealed minimal usage of Bitcoin in El Salvador in 2022 and a persistently negative public opinion towards cryptocurrencies.
As Binance expands its services in El Salvador, the ongoing investigation in the US raises important questions about the regulatory compliance and transparency of the cryptocurrency platform.