El Salvador Grants its First Crypto Licence to Bitfinex
Bitfinex has become the first cryptocurrency exchange to be registered as a digital asset service provider (DASP) by El Salvador’s National Digital Asset Commission. The Latin American country recognised bitcoin as a legal tender in 2021, under President Nayib Bukele’s leadership, and has since purchased amounts of the cryptocurrency on a macroeconomic level and launched various BTC-related initiatives. The authorisation marks a milestone in Bitfinex’s long-term strategy “to deliver financial freedom and inclusion to communities and countries around the world,” according to a blog post by the platform. The registration will permit entities to raise capital and interact with investors who deal with the asset class.
El Salvador’s digital asset issuance law, which was given the go-ahead by the National Congress in January 2023 and supports financial innovation and economic growth, aims to build on regulations for retail and institutional investors.
El Salvador gained global attention after declaring bitcoin as an official payment method in September 2021, a move that was initiated by Bukele’s government. Since then, the nation has built a massive vet hospital where patients can use bitcoin as a payment method, accumulated BTC on a macroeconomic level, and designed a high-tech town called “Bitcoin City,” where the coins logo will be reflected when looked at from above. Bukele recently highlighted the asset as being among the primary reasons for El Salvador’s boost in tourism levels and a fix for its legacy.
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