Bitfinex Gets First Digital Assets License Issued By El Salvador

Key Points:

• El Salvador’s new Digital Asset Issuance Law framework gave Bitfinex Securities El Salvador the first digital asset service provider license.
• The license was awarded by El Salvador’s National Digital Asset Commission, which is in charge of industry regulation.
• The exchange will create a new firm named Bitfinex Securities El Salvador, which will operate independently of Bitfinex Group’s other platforms in the nation.

Bitfinex has been granted a license to perform digital asset services under El Salvador’s new Digital Assets Issuance Law.

The new license follows legislation established in January by El Salvador’s Legislative Assembly that regulates digital securities and creates a framework for the Central American nation to launch bitcoin-backed bonds, commonly known as “Volcano Bonds.”

According to the release, the exchange is the world’s first international digital asset platform to be recognized as a Digital Asset Service Provider in El Salvador, according to the license given on April 11 by El Salvador’s National Digital Asset Commission.

Paolo Ardoino, Chief Technology Officer of the Bitfinex group, stated:

“We are delighted to be the first company to be awarded this licence. 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 digital asset regulatory regime.”

Bitfinex Securities El Salvador, a newly established company, will also provide a regulatory-compliant platform for enterprises globally to issue digital assets like shares, bonds, and other financial instruments, according to the release.

Based on El Salvador’s acceptance of Bitcoin as legal cash, the Digital Asset Issuance Law seeks to provide a solid legislative framework for the issuance of digital assets and the tokenization of conventional assets in order to stimulate financial sector innovation.

Tokenized shares and yield-bearing assets are among the products that will be allowed to start under the new regulations, according to Jesse Knutson, head of operations at Bitfinex Securities.

Bitfinex’s worldwide reach continues to grow. Its security token platform became operational in Kazakhstan in 2022. El Salvador aims to become a Latin American center for digital assets and has made progress toward that objective since accepting Bitcoin. This might be a promising place for cryptocurrency exchanges wishing to expand their operations.

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Harold

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