Bitfinex, a cryptocurrency exchange, obtained its first DASP authorization for El Salvador.
Bitfinex became the first cryptocurrency exchange to be authorized by El Salvador’s regulators as a Digital Asset Service Provider (DASP).
With the adoption of Bitcoin as a legal tender in 2021, Latin American country is a pioneers in this industry. Under the leadership of President Nayib Bukele, it launched a number of BTC-related initiatives and made significant purchases of the primary cryptocurrency.
“Happy to Be the First”
In a recent post on its blog, Bitfinex highlighted the authorization received by El Salvador’s National Digital Asset Commission as a milestone in the company’s long-term strategy “to deliver financial freedom and inclusion to communities and countries around the world.”
The platform’s CTO, Paolo Ardoino, stated that the company is “delighted” to be the first to hold such a license. He added that it would allow Bitfinex Securities to “facilitate the issuance and secondary trading of assets with clearly defined rights and obligations as specified in the new digital asset regulatory regime.”
Additionally, the registration will make it possible for organizations—from small firms to governments—to raise capital and interact with investors that deal with the asset class.
According to Jesse Knutson, Head of Operations at Bitfinex Securities, there has been an increase in recent times in the demand for products that are included under the new regulation. Some examples of these products are tokenized shares and yield-bearing assets.
“Issuers are eager to access the digital asset market because they are attracted to the speed, cost efficiencies, and ease of issuance that digital assets provide in comparison to traditional assets.” The market for digital assets is still in its infancy despite having a size of more than one trillion dollars; nonetheless, this industry is expanding at an incredible rate,” he continued.
After obtaining approval from the National Congress, El Salvador’s newest cryptocurrency legal framework, the Digital Asset Issuance Law, became effective in January 2023. The primary objective is to promote financial innovation and contribute to the expansion of the region’s economy.
On top of this legislation, the authorities of the country intend to develop a framework for the regulation of the activities of retail and institutional investors.
The Land of Bitcoin: El Salvador
A small country in Central America that was infamously known as the “murder capital of the world” made headlines in September 2021 when it announced that Bitcoin would be recognized there as an acceptable form of currency for transactions.
In the years that followed, the government, under the leadership of President Bukele, launched a number of initiatives related to the leading digital asset. These initiatives included the accumulation of BTC on a macroeconomic level, the construction of a huge veterinary hospital where patients can use the asset as a payment method, and planning a high-tech town.
The so-called “Bitcoin City” will be built in close proximity to the volcanoes Conchagua and Tecapa and will draw its electricity from the geothermal energy produced by those volcanoes. Without a doubt, BTC will serve as the primary form of payment, and the urban area will be shaped like a circle so that, when viewed from above, it may be correlated to the logo of the coin.
Recently, Bukele acknowledged the asset as one of the key reasons for the increased tourism levels and fixed legacy in El Salvador:
“Because of Bitcoin, we have seen a 95% increase in the number of tourists who visit our country. Several Bitcoiners wish to visit a country where Bitcoin is accepted as legal tender; there are Bitcoin conferences here.
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