Digital asset exchange Bitfinex Securities El Salvador has received a digital asset service provider license under El Salvador’s new Digital Assets Issuance Law, which was passed by El Salvador’s National Congress in January, with the goal of fostering increased financial innovation and growth in the Central American country.
According to the announcement, the license, which was granted on April 11 by El Salvador’s National Digital Asset Commission, makes Bitfinex Securities El Salvador “the world’s first international digital asset platform to receive approval to be licenced as a Digital Asset Service Provider” in El Salvador
We are now the world's first international digital asset platform to receive approval for a Digital Asset Service Provider license under El Salvador’s new Digital Assets Issuance Law! A milestone for financial freedom in Latin America.@bitfinex https://t.co/88Mmmi5s6M— Bitfinex Securities (@BFXSecurities) April 11, 2023
Paolo Ardoino, chief technology officer of Bitfinex, noted that the license will allow “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.”
The announcement said that Bitfinex Securities El Salvador, a newly-formed entity, would offer a regulatory-compliant platform for companies worldwide to issue digital assets like equities, bonds, and other financial instruments. This will present a unique opportunity for businesses and individuals to leverage the advantages of issuing, investing, and trading digital assets in the favorable regulatory environment of El Salvador.
Bitfinex Securities El Salvador will function independently from Bitfinex group's current platform, Bitfinex Securities AIFC, managed by Bitfinex Securities Limited.
Related: Why did 12K Bitcoin margin longs close at Bitfinex, and why didn’t it impact BTC price?
Bitfinex continues to expand its global reach. In 2022, Bitfinex’s security token platform went live in Kazakhstan. The security token platform (STO) by Bitfinex, announced in September 2021, is now regulated under the Astana International Financial Center (AIFC) in Kazakhstan.
El Salvador, the first country to establish Bitcoin (BTC) as a legal tender, continues to forge its way in becoming a tech friendly hub. On April 1, Cointelegraph reported that the country had decided to eliminate all taxes on technology innovations. Salvadoran President Nayib Bukele believes that winding down tax requirements will expedite technological development.