Bitfinex has become the first crypto company to receive a digital asset license in El Salvador.
In January, the country’s parliament passed legislation that regulates digital securities.
Bitfinex Receives A Digital Asset License In El Salvador
Cryptocurrency exchange Bitfinex announced that it had become the first international crypto company to receive a digital asset license in El Salvador.
The company said it had received approval to be licensed as a Digital Asset Service Provider under El Salvador’s ground-breaking new Digital Assets Issuance Law (“Ley de Emisión de Activos Digitales”).
This latest development comes after a law passed in January by the Legislative Assembly of El Salvador that regulates digital securities and created a framework for El Salvador to launch bitcoin-backed bonds, also known as "Volcano Bonds".
While commenting on this latest development, Paolo Ardoino, Chief Technology Officer of the Bitfinex group, said;
“We are delighted to be the first company to be awarded this license. It will enable 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.”
Digital Asset Issuance Law passed by El Salvador’s parliament earlier this year seeks to foster increased financial innovation and growth in the country. El Salvador made history in 2021 after becoming the first country in the world to adopt Bitcoin as a legal tender.
The Central American country is now building a solid foundation to ensure a more inclusive and accessible financial environment for both foreign and domestic companies, as well as retail and institutional investors.
Bitfinex receiving the license doesn’t come as a surprise, as Ardoino has worked closely with El Salvador on the bitcoin bond project.
El Salvador’s new regulation would also enable companies to launch tokenized shares and yield-bearing assets.