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Crypto News

Bitfinex Securities Secures License To Provide Digital Asset Services In El Salvador

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

bitfinex license el salvador

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Bitfinex Securities El Salvador has obtained a license as a digital asset service provider in accordance with the Digital Assets Issuance Law of El Salvador. This law was introduced in January by the National Congress of El Salvador with the aim of promoting financial innovation and development in the Central American country.

El Salvador’s National Digital Asset Commission issued the license on April 11,  making Bitfinex Securities El Salvador the world’s first international digital asset platform to obtain permission to be licensed as a Digital Asset Service Provider in El Salvador.

According to Paolo Ardoino, the Chief Technology Officer of Bitfinex, the license allows Bitfinex Securities El Salvador to enable the issuance and trading of assets with well-defined rights and obligations in accordance with the regulations set forth by the new digital asset regulatory framework.

Bitfinex Securities El Salvador, a newly-formed entity, will provide a regulatory-compliant platform for companies worldwide to issue digital assets such as equities, bonds, and other financial instruments. This will give businesses and individuals a unique chance to capitalize on the benefits of issuing, investing, and trading digital assets in El Salvador’s advantageous regulatory environment.

Bitfinex Securities El Salvador will function as a separate entity from the current platform of Bitfinex group’s AIFC-based Bitfinex Securities, which is managed by Bitfinex Securities Limited.

Bitfinex is expanding its global presence. Kazakhstan launched Bitfinex’s security token infrastructure in 2022. The security token platform (STO) announced by Bitfinex in September 2021 is now governed by Kazakhstan’s Astana International Financial Center (AIFC).

El Salvador, the first nation to recognize Bitcoin as legal tender, continues establishing itself as a technology hub. Also, the country had decided to eliminate all taxes on technological innovations. President of El Salvador, Nayib Bukele, believes that reducing tax requirements will accelerate technological advancement.