El Salvador Issues Historic First Digital Asset License to Bitfinex Crypto Exchange – Here's What You Need to Know
With the aim to further boost the crypto-friendly nation’s exposure to cryptocurrencies, El Salvador has handed its first digital asset license to Bitfinex. The latest move by the country’s regulator National Digital Asset Commission (NDAC) makes the exchange the first international digital asset platform to obtain approval under El Salvador’s Digital Assets Issuance Law.
The licence “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,” Paolo Ardoino, the chief technology officer of the Bitfinex group, was quoted in a statement released by the platform.
The permission was issued to the group’s local subsidiary Bitfinex Securities El Salvador S.A. de C.V.
“It means that a whole range of entities, from small companies to governments, can raise capital in a regulated environment, and tap into a class of investors that are extremely comfortable with crypto assets and tokenized securities, which represents a market of over $1 trillion with a peak of $3 trillion,” according to the exchange’s CTO.
The Digital Asset Issuance Law was passed by the Central American country’s National Congress last January. The legislation was developed to foster increased investments in El Salvador’s crypto sector, building on the nation’s groundbreaking decision to adopt bitcoin (BTC) as legal tender in 2021.
Efforts by El Salvador’s senior officials, including its crypto-enthusiastic president Nayib Bukele, are focused on using the crypto industry to fuel the country’s economy and lure foreign investors. Among others, the government has established the National Bitcoin Office (ONBTC) of El Salvador, a
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