El Salvador is one of the prominent crypto-friendly countries. It is the first in the world to make Bitcoin a legal tender. In 2023, it introduced a revolutionary law, called the Digital Assets Securities Law, boosting its efforts to become the global crypto hub. Recent developments indicate that many crypto companies are keen to benefit from the pro-crypto environment in the Central American country. Interestingly, Bitfinex has moved its derivatives arm from Seychelles to San Salvador as it has won a Digital Asset Service Providers license. Let’s dive into the details of this crucial move. Ready?
Bitfinex Derivatives Moved to El Salvador
In an official statement released to the media, Bitfinex Derivatives has acknowledged the rumours of its relocation from Seychelles to El Salvador. It has also confirmed the report that its DASP licence request has been approved by the Central American country.
El Salvador’s Crypto-Friendly Framework Explained
El Salvador has a true potential to emerge as a prominent cryptocurrency hub, not only because it holds at least 6,002 BTC, worth $574,644,924, but also for the fact that it is very eager to develop crypto-friendly policies. The introduction of the Digital Assets Securities Law, in 2023, which supports tokenisation of assets like funds, debit, equity and even real estate, is a good example.
Bitfinex Securities became one of the first crypto companies to recognise the vast potential of this law. It earned a local DASP license just a couple of months after the law’s introduction.
Bitfinex’s Tokenised Offerings in El Salvdaor
Demonstrating the tremendous potential of the tokenisation law of El Salvador, Bitfinex launched a tokenised public offering of US Treasury bills in November 2024.
Earlier, a similar effort by the exchange to tokenise a Hilton hotel project in July 2024 failed miserably, as the $342,000 fund raised was far lower than the project’s minimum requirement of $500,000.
In conclusion, El Salvador’s progressive crypto regulations are attracting global players like Bitfinex. With innovative tokenisation initiatives, the country continues its journey toward becoming a leading crypto hub.
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FAQs
This law, introduced in 2023, supports the tokenisation of assets like funds, equity, and real estate, encouraging crypto growth.
Bitfinex launched tokenised public offerings, including US Treasury bills, demonstrating El Salvador’s potential as a crypto hub.
