Bitfinex becomes the first licensed DASP in El Salvador

Bitfinex Securities El Salvador has become the first licensed digital asset service provider (DASP) in El Salvador. El Salvador became the first country to adopt Bitcoin as legal tender. The country has also created a conducive environment for digital assets.

Bitfinex is the first licensed DASP in El Salvador

Bitfinex Securities El Salvador has obtained a DASP license to operate in El Salvador. Bitfinex will operate in one of the most conducive environments for digital assets and crypto companies.

Bitfinex revealed its newly obtained license through a blog post published on Tuesday. Bitfinex is a cryptocurrency exchange created in December 2012, and since its creation, the company has emerged as a leading platform for crypto assets. The company said the license was a “historic victory for financial freedom in Latin America and beyond.”

This new license means that Bitfinex Securities El Salvador would facilitate the issuance and trading of tokenized assets. The tokenized assets that the company will provide include bonds and equities.

The Chief Technology Officer at the Bitfinex Group, Paolo Ardoino, said that the company was pleased to receive this license, adding that it would enable the company to provide the issuance and secondary trading of digital assets.

“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,” Ardoino said.

While also addressing the issuance of this license, the Head of Operations at Bitfinex Securities, Jesse Knutson, said that the platform would receive a significant demand from the issuers and investors for various products like tokenized shares, yield-bearing assets, and various investment products. These products are provided under the new law that is available in El Salvador.

Bitfinex said that the issuers of this product were eager to access the cryptocurrency products currently available in the market. The crypto market has a total valuation of more than $1 trillion and is still in the infant stages. However, this market is growing rapidly, which is a positive aspect for the community and the companies providing crypto services.

El Salvador is a growing crypto hub

El Salvador has emerged as one of the most friendly crypto nations globally. The country passed the Bitcoin law in September 2021 that allowed using BTC as legal tender. The country has since gone ahead to make other developments in the industry.

The President of El Salvador, Nayib Bukele, has announced the country’s plans to purchase one Bitcoin daily. The country also said it would use volcanic energy to mine more BTC.

However, El Salvador’s Bitcoin plan has been criticized by many who believe that the country did not educate people about Bitcoin before unveiling the Bitcoin law. There is also much criticism of the government using public funds to purchase volatile assets such as Bitcoin.