The derivates arm of Bitfinex announced that it has secured a Digital Asset Service Provider (DASP) license to start operations in El Salvador.
In 2021, El Salvador gained attention for adopting Bitcoin as a legal tender. Since then, they have worked on incorporating blockchain processes in everyday operations.
Securing the DASP License
According to sources, Bitfinex secured the DASP license in April 2023, exactly three months after the country passed the Digital Asset Issuance Law. This time, after the derivatives arm of the exchange obtained the license, Paolo Ardoino, CTO of Bitfinex Derivatives’ made a statement.
“This critical transition represents a defining moment for Bitfinex Derivatives and highlights El Salvador’s rise as a global financial hub.”
Ardoino highlighted El Salvador’s growing presence as a worldwide financial hub. This move aligns with the country’s target to create stronger crypto frameworks.
It is not Bitfinex’s first rodeo in El Salvador. The exchange platform launched another product under its El Salvador license, debuting tokenized US T-bills. However, Bitfinex’s success at the time was short-lived after the exchange platform had to refund investors for another failed tokenization effort in 2024.
El Salvador’s Commitment To Digitization and Cryptocurrency
After Nayib Bukele became president in 2019, El Salvador became known as a crypto-friendly nation. The country started attracting crypto companies with their less strict policies and regulations. Not only this, but El Salvador became the first country to accept Bitcoin as a legal tender. Today, they hold a significant amount of Bitcoin in the country’s reserves.
The International Monetary Fund has expressed displeasure regarding El Salvador’s adoption of Bitcoin as a legal tender alongside the country’s other crypto policies.
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