Bitfinex Derivatives, a part of the popular cryptocurrency exchange, has relocated to El Salvador. The approval of its Digital Asset Service Providers (DASP) license marks a significant milestone in Bitfinex Derivatives’ ambition to expand in Central America’s burgeoning crypto-friendly market.
The move from Seychelles to El Salvador underscores Bitfinex Derivatives’ trust in the country’s stringent cryptocurrency rules. Paolo Ardoino, Chief Technology Officer of Bitfinex Derivatives, welcomed El Salvador’s actions, particularly its efforts to develop itself as a worldwide financial hub.
Enacted in 2023, the Digital Assets Securities Law reflects El Salvador’s commitment to digital innovation. This platform streamlines the tokenization of assets such as debt, equity, and real estate, allowing firms to raise cash more effectively and attract investment.
Bitfinex Securities, another division of the company, has already used this legal framework. In 2023, it obtained a local DASP license and debuted tokenized sales that included US Treasury bills. While certain initiatives, such as the Hilton hotel tokenization project, have encountered difficulties, these efforts demonstrate growing interest in El Salvador’s progressive crypto laws.
The country’s proactive approach to cryptocurrency, paired with its adoption of Bitcoin as legal tender, continues to pique global interest. Bitfinex’s decision to relocate highlights El Salvador’s potential as a global cryptocurrency hub, paving the way for future innovation and expansion in the digital asset industry.
