The suitability of the El Salvador crypto market continues to attract many foreign investors. The Hong Kong-based digital asset provider Bitfinex Securities has received regulatory approval to begin operation in El Salvador.
An official update from the crypto firm dated April 11 confirmed that Bitfinex’s virtual asset service provider permit was green-lighted under the new law in El Salvador. The licensing process followed the Digital Assets Issuance Law (DAIL) procedures.
Bitfinex Entrance to El Salvador
The Salvadorian representatives of the National Congress approved the DAIL regulations in January. In 2022, the desire to become a crypto-friendly country motivated the regulators to formulate new laws to increase innovation in the financial sector.
Additionally, the regulators aimed to adopt policies that would stimulate economic growth in Central America. The amendments to the regulation eased the adoption of non-discriminatory policies to attract local and foreign investors in El Salvador.
As a result, the friendly environment in El Salvador has inspired the Bitfinex team to submit their registration documents to the National Digital Asset Commission. The submission of the Bitfinex license tasked the regulators to scrutinize the level of conformance of the crypto firm thoroughly.
Based on their findings, the Bitfinex registration document demonstrated that the crypto firm was qualified to provide digital services in El Salvador.
Digital Asset Licensing Process in El Salvador
The April 11 approval of the permit positioned Bitfinex as the first global company to receive a Digital Asset Service Provide (DASP) license in El Salvador. A statement from Bitfinex chief technology officer Paolo Ardoino confirmed that the license allows the company to provide crypto-related products to Salvadorian consumers.
He stated that Bitfinex would offer secondary trading services that conform with the new crypto regulation in the region. The company is set to establish a physical office in El Salvador that will oversee the distribution of digital assets, including bonds, equities and crucial financial tools.
The Bitfinex team anticipates their presence in El Salvador will provide endless benefits to investors and businesses. The Bitfinex team plans to support investors in improving the profitability and performance of companies in El Salvador.
Using a compliant approach, they plan to empower the traders to seize the available opportunity in the digital markets.
Suitability of El Salvador Market
Additionally, the new office will be supervised by Bitfinex Securities Limited. The Bitfinex El Salvador team plans to utilize the Bitfinex Securities AIFC trading platform launched in 2021.
The trading platform was established to provide financial support to investors across the globe. According to Bitfinex’s long-term objective, the team plans to increase its geographical presence to ease the accessibility of digital asset services.
The quest to execute the Bitfinex strategic plans motivated the company to invest in developing a security token (STO) in 2021. The STO was launched in the Kazakhstan market last September.
In the meantime, the issuance of the STO is supervised by the Astana International Financial Center (AIFC) regulators. The entrance of the Bitfinex group into the El Salvador markets will support the country in becoming the first global crypto hub.
After legalizing Bitcoin as a tender in 2021, the government has invested in developing policies, programs and projects supporting the crypto industry’s expansion. Recently, Salvadoran President Nayib Bukele presented a submission to Congress demanding the exemption of taxes on technological developments.
In his April 1 proposal, President Bukele stated that supporting technological growth will enable the country to address hyperinflation concerns. He proposed that eliminating tech taxes would minimize the overdependence of US currency in the region.