El Salvador Considers Law For Digital Asset Service Providers

A long-awaited bill governing the nation’s issuers and service providers of digital assets is now being considered by a committee inside El Salvador’s Legislative Assembly.

A national commission will be established to monitor the certification and operations of businesses supplying digital assets in El Salvador under the so-called “digital asset issuance law.”

Under the proposed law, El Salvador’s suppliers of digital asset services would need to register and abide by several requirements.

The digital assets these organizations intend to offer must be listed, along with their benefits, constraints, and limits. Along with providing the names and positions of company employees, they would also need to demonstrate their ability to provide customer service and take security precautions.

Digital asset issuers would also be required to abide by certain regulations, such as disclosing information about the regions or nations in which they conduct business.

It is notable because it refers to all forms of digital assets rather than just Bitcoin. This most recent plan, however, is less concerned with making other cryptocurrencies legal money and more with setting guidelines for distributing digital assets to the general population.

According to the text, the new law would aim to promote the efficient development of the digital asset market and protect the interests of the acquirers.

Tether and Bitfinex Chief Technology Officer Paolo Ardoino have responded positively to the matter:

Additionally, digital asset issuers must abide by requirements, including revealing details about the nations or jurisdictions where they are located. The plan also calls for the establishment of a “Bitcoin fund management agency” that would be in charge of managing, safeguarding, and investing the proceeds from public offerings of digital assets made by the government of El Salvador and its autonomous institutions.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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