El Salvador Grants its First Crypto Licence to Bitfinex

Bitfinex has become the first cryptocurrency exchange to be registered as a Digital Asset Service Provider (DASP) by regulators in El Salvador.

The Latin American country is a pioneer in this field, having adopted bitcoin as legal tender in 2021. Under President Nep Bukele, it has purchased quantities of the primary cryptocurrency on a macro level and launched several bitcoin-related initiatives.

“Glad to be the first”

at recent days blog postBitfinex described the mandate obtained by the National Digital Assets Commission of El Salvador as a milestone in its long-term strategy to “provide financial freedom and inclusion to communities and countries around the world.”

Paolo Ardoino, the platform’s chief technology officer, said the entity was “delighted” to be the first to receive such a license. “It will enable Bitfinex Securities to facilitate the issuance and secondary trading of assets with clearly defined rights and obligations as outlined in the new regulatory regime for digital assets,” he explained.

The registration will also allow entities (from small businesses to governments) to raise capital and interact with investors who deal with the asset class.

Jesse Knutson – COO of Bitfinex Securities – said that demand for products included under the new regulations, such as token stocks and yield-bearing assets, has been surging recently.

Issuers are keen to access the digital asset market, as they are attracted by the speed, cost efficiency, and ease of issuance compared to traditional assets. The digital asset market is a trillion-dollar market, still in its infancy but growing at a tremendous speed.”

The latest regulatory framework for cryptocurrencies in El Salvador – the Digital Asset Issue Law – saw the light in January 2023 after receiving the green light from the National Congress. Its main objective is to support financial innovation and economic growth in the region.

State authorities plan to build on top of this legislation by regulating the operations of individual and institutional investors.

El Salvador: The Land of Bitcoin

The small Central American country, previously declared the homicide capital of the world, made headlines in September 2021. declaring Bitcoin as an official payment method on its territory.

The government, led by President Bukele, initiated many pioneering digital asset-related projects in the following years, such as the accumulation of BTC at the macro level, building A huge veterinary hospital where patients can use the asset as a means of payment, and design High tech city.

The so-called “Bitcoin City” will be located near the Conchagua and Tecapa volcanoes and will use their geothermal energy to power itself. Needless to say, BTC will be the main currency, while the design of the metropolitan area will be in the shape of a circle so that it could represent the logo of the currency when viewed from above.

Bukele recently highlighted Origin as one of the main reasons for the enhanced levels of tourism in El Salvador and its enduring legacy:

“We’ve increased tourism by 95%, in part because of bitcoin. There are a lot of bitcoin makers who want to go to the country where bitcoin is legal tender, and we have bitcoin conferences.”