As stated by Bitfinex, obtaining a license in El Salvador is an important milestone, as it opens up opportunities for small and medium-sized companies, corporations and retail investors to participate in global markets.
Bitfinex Securities LimitedOne of the first and largest digital currency exchanges to offer cutting-edge services to crypto traders and global liquidity providers, creates history in El Salvador, becoming the first fully regulated crypto trading platform to receive a digital asset license Is. in country.
We are now the first international digital asset platform in the world to receive approval for a Digital Asset Service Provider License under El Salvador’s new Digital Asset Issuance Law! A milestone for financial freedom in Latin America.@bitfinex https://t.co/88Mmmi5s6M
— Bitfinex Securities (@BFXSecurities) April 11, 2023
As Bitfinex stated in its AnnouncementObtaining a license in El Salvador is an important milestone, as it opens up opportunities for small and medium-sized companies, corporations and retail investors to participate in global markets.
Bitfinex CTO Paolo Ardoino commented:
“We are delighted to be the first company to be awarded this license. This will enable Bitfinex Securities to facilitate the issuance and secondary trading of assets with clearly defined rights and obligations, as set out in the new digital asset regulatory regime. mentioned.
This is the first license granted under the Digital Assets Securities Law (DASL), passed by the El Salvador government in January this year. Within the DASL, El Salvador has established a legal framework around the issuance of digital assets and a broad crypto token classification. Furthermore, it created a way to move towards a so-called Volcanic Bond or Volcanic Token that enables wealth to be generated through the world’s first sovereign bitcoin (B T c) deeply concerned. The latter aims to raise more than $1 billion generated mostly from geothermal bitcoin mining operations, which harness energy from the country’s active volcanoes. Notably, the bill was overwhelmingly supported by 62 congressional votes, while 18 members voted against it.
Since Bitfinex has been granted a digital asset license, it will act as the technology provider for the Volcanic token. Therefore, Bitfinex will provide services that enable investors to access new sources of funds and innovative financial products.
Progressive Adoption of Bitcoin in El Salvador
Nayib Bukele, the President of El Salvador, has long been promoting cryptocurrencies as a path to financial freedom. As of September 2021, bitcoin has the status of a legal tender in the country, which means that all businesses in El Salvador are required to accept the cryptocurrency. Furthermore, the government has been buying bitcoin as part of its treasury. The largest purchases were made in May 2022, when El Salvador buy 500 btc For a whopping $15.3 million. last june country another 80 btc pairs In his portfolio, spent $1.52 million on purchases. Even when bitcoin’s price crashed last summer, El Salvador didn’t lose its faith in crypto, dismissing any financial risks associated with the digital asset’s volatile nature.
In November last year, the government went further, establishment The first national bitcoin office to coordinate local efforts related to the currency. The office will “design, diagnose, plan, program, coordinate, follow-up, measure, analyze and evaluate plans, programs and projects related to bitcoin.”
Currently, the El Salvador government is also considering opening a so-called “Bitcoin embassy” in Texas, United States.
Daria is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding ways in which blockchain can transform various industries and bring our lives to a different level.
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