- El Salvador grants Bitfinex Securities its first digital assets license.
- The announcement of the license grant was made earlier in the week.
- El Salvador granted the license in line with its new Digital asset issuance law.
- ● Bitfinex Securities’s chief technology officer noted that the license would allow the company to facilitate asset issuance and secondary trading.
El Salvador has granted its first digital assets license, and it is to a digital asset exchange, Bitfinex securities; it was received under El Salvador’s new Digital Asset Issuance Law, a law that was passed by the National Congress in El Salvador back in January, with an essential goal of fostering the increased financial innovation and growth for the Central American community.
The announcement of which license grant was made in April by the National Digital Asset Commission of El Salvador, announcing the world’s first international digital asset platform to be a recipient of the approval to be licensed as a digital asset service provider in the state of El Salvador.
The Chief Technology Officer of Bitfinex, Paolo Ardino, noted that licensing Bitfinex received would allow them to facilitate the issuance and the secondary trading of assets with a more clearly defined obligation and rights outlined in the new digital asset regulatory regime.
The released statement stated that Bitfinex securities, a recently formed entity, would also offer a regulatory-compliant platform for international companies to issue digital assets like bonds, equities, and other financial instruments.
The license will present a significant opportunity for businesses and other individuals to take advantage of issuing, trading, and investing in digital assets in the new and favorable regulatory regime of El Salvador.
Bitfinex Securities El Salvador will be able to function independently from the current platform of Bitfinex Group, Bitfinex Securities AIFC, which Bitfinex Securities Limited manages.
Bitfinex will continue to expand its global reach, and back in 2022, the company’s security token platform went live in Kazakhstan. The security token platform (STO) was created by Bitfinex and was launched around September 2021 and is now regulated under the Astana International Financial Center (AIFC) in Kazakhstan.
El Salvador is the first country to establish Bitcoin as a legal tender. It continues to forge into becoming a tech-friendly hub; earlier in the month, Cointelegraph reported that El Salvador had decided to eliminate all taxes on tech innovations. Salvadoran President Nayib Bukele believes that winding down tax requirements will help expedite technological development in the country.
Recently, El Salvador also removed all taxes related to tech innovation for economic growth, becoming the first country to establish Bitcoin as a legal tender.
If no holds barred the growth of tech in the country, they’d be a more healthy space for tech innovation to thrive in the country and at a faster pace, which will impact the country’s economic growth.