Bitfinex Derivatives has taken a big step forward by acquiring a Digital Asset Service Provider (DASP). Licensing in El Salvador. With this move, the platform can now offer more derivatives trading services in Latin America. Through this license, Bitfinex plans to leverage El Salvador’s support for cryptocurrencies to set up shop in the region.
Will it change the rules of the organizational game?
Bitfinex derivatives Able to operate within El Salvador’s regulatory framework, established under the Digital Asset Issuance Law, thanks to a DASP license. This law, which came into effect in early 2023, aims to attract digital asset companies while maintaining legal clarity and transparency.
For Bitfinex, this framework is a game-changer. Paolo Ardoino, chief technology officer at Bitfinex, described the licensing as a major event that enables the company to bring innovative derivatives products to a wider audience.
📢 Bitfinex Derivatives has obtained a digital asset service provider license in El Salvador – a huge step in our global expansion.
The new license supports El Salvador as a major financial center for digital assets.
Find out more:https://t.co/vPGO01clhp pic.twitter.com/79hdbBHONX— Bitfinex (@bitfinex) January 7, 2025
El Salvador’s aggressive approach Cryptocurrencies It has established the country as a hub for blockchain startups. Since accepting Bitcoin as legal cash in 2021, the country has established itself as a global leader in the use of digital assets. The addition of Bitfinex to the list of companies operating under the Digital Assets Issuance Law strengthens El Salvador’s position as a crypto-friendly destination.
Cryptocurrency boom in Latin America
Bitfinex’s timing is perfect. Latin America has seen an increase in the use of Bitcoin, driven by economic issues such as currency depreciation and financial volatility. A large number of individuals in the region, especially those who do not have bank accounts, are adopting digital assets to achieve financial inclusion and stability.
Bitfinex intends to capitalize on this growing demand by providing products such as perpetual contracts and other derivatives tailored to a variety of user requirements.
This strategic expansion is consistent with Bitfinex’s goal of providing cutting-edge digital asset solutions globally. By establishing a stronghold in El Salvador, the platform is well positioned to serve the fast-growing Latin American cryptocurrency market.
What does it mean for the industry?
Bitfinex’s action highlights the need for well-defined rules to encourage innovation. Aside from providing operational certainty to the cryptocurrency market, the DASP license sets a standard for other countries considering such systems. As El Salvador inspires the use of Bitcoin, its legislative environment may influence international standards for digital asset companies.
For Bitfinex, this is more than just regional expansion; It is a statement of intent to lead in the ever-changing cryptocurrency sector. With El Salvador as a launching pad, the company is poised to create new opportunities and set standards for the future of derivatives trading in the cryptocurrency market.
Featured image from Pexels, chart from TradingView
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