Despite previous challenges, such as a failed tokenisation project for a Hilton hotel, Bitfinex’s decision reflects confidence in El Salvador’s robust crypto regulatory framework and its growing prominence in the cryptocurrency sector.
Bitfinex Derivatives, the derivatives arm of the crypto exchange, has secured a Digital Asset Service Providers (DASP) licence to operate in El Salvador. The move marks a significant shift for the company, which will relocate from Seychelles to the Central American nation. Paolo Ardoino, Bitfinex Derivatives’ chief technology officer, praised El Salvador’s growing prominence as a global financial hub and its commitment to creating robust crypto frameworks.
The approval aligns with El Salvador’s ongoing efforts to develop its crypto infrastructure, especially after the country introduced its Digital Assets Securities Law in January 2023. This regulation simplifies tokenisation, allowing companies to raise capital by issuing tokens tied to assets like debt, equity, and real estate.
Bitfinex has already benefitted from the country’s legal framework, with Bitfinex Securities securing a local DASP licence in April 2023. However, the company faced challenges when it had to refund investors in a tokenisation effort for a Hilton hotel project due to failing to meet the minimum fundraising target. Despite this setback, the move to El Salvador signals a positive outlook for the country’s growing role in the crypto world.
Leave a Reply