The move comes after the company secured a Digital Asset Service Providers (DASP) license.
In a Jan. 7 statement, Paolo Ardoino, the Chief Technology Officer of Bitfinex Derivatives, described the relocation as a “defining moment” for the firm. He also praised El Salvador’s push to create a friendly environment for crypto innovation. “El Salvador’s rise as a global financial hub is undeniable,” Ardoino said, emphasizing the nation’s efforts to craft cutting-edge crypto frameworks.
A Step Toward Becoming a Crypto Hub
El Salvador has been on a fast track to becoming a crypto haven. In 2023, the country passed the Digital Assets Securities Law, laying the groundwork for businesses to tokenize assets like real estate, equity, and funds. These measures simplify capital-raising for companies and offer exciting opportunities for investors.
Following this law, Bitfinex Securities secured its own DASP license in April 2023, making headlines as the company launched innovative tokenized public offerings.
📢 Bitfinex Derivatives has been awarded a Digital Asset Service Provider licence in 🇸🇻 El Salvador – a monumental step in our global expansion.
The new licence supports El Salvador as a key digital asset financial centre.
Discover more: pic.twitter.com/79hdbBHONX— Bitfinex (@bitfinex) January 7, 2025
For instance, in November 2024, Bitfinex debuted tokenized U.S. Treasury bills (T-bills) under El Salvador’s crypto-friendly regulations. However, not all ventures have been smooth sailing. In July 2024, the company had to refund investors after a tokenized hotel project fell short of its fundraising goal. The project aimed to finance the construction of a Hampton by Hilton hotel but raised only $342,000—far below its $6.25 million target.
More About Bitfinex
Yesterday, El Salvador added to its strategic Bitcoin reserve, continuing its commitment to the leading cryptocurrency. With this latest purchase, the country now holds a total of 6011 Bitcoin in its national reserve.
JUST IN: El Salvador bought more #Bitcoin for their strategic bitcoin reserve this afternoon 🇸🇻 pic.twitter.com/SefpwAPkGL
— Bitcoin Magazine (@BitcoinMagazine) January 7, 2025
This move highlights El Salvador’s ongoing strategy to embrace Bitcoin as both an asset and a symbol of its status as a global crypto pioneer. The purchase further underscores the nation’s confidence in Bitcoin’s long-term potential and its role in bolstering El Salvador’s financial future.
Disclaimer
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