Bitfinex Becomes First Licensed DASP in El Salvador

Bitfinex Securities El Salvador, a newly-established entity belonging to the cryptocurrency exchange Bitfinex, has emerged as the first licensed digital asset service provider (DASP) in El Salvador. The licensing comes three months after El Salvador (the first country in the world to adopt Bitcoin as legal tender) passed the Digital Asset Issuance Law.

Bitfinex Secures License for Tokenized Assets

Bitfinex announced the new license on Tuesday in a blog post. The cryptocurrency exchange, which was founded in December 2012, described the license as “an historic victory for financial freedom in Latin America and beyond.”

We are now the world's first international digital asset platform to receive approval for a Digital Asset Service Provider license under El Salvador’s new Digital Assets Issuance Law! A milestone for financial freedom in Latin America.@bitfinex https://t.co/88Mmmi5s6M

The new license means that Bitfinex Securities El Salvador can facilitate the issuance and trading of tokenized assets such as equities and bonds on its platform.

“We are delighted to be the first company to be awarded this licence. It 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, explained.

🇸🇻@Bitfinex Securities El Salvador Granted El Salvador’s First-Ever Digital Assets License.https://t.co/yg5TAdefBRThread 🧵

Also speaking about the license, Jesse Knutson, the Head of Operations at Bitfinex Securities, noted that the platform will get “considerable demand” from both issuers and investors for products such as tokenized shares, yield-bearing assets and other investment products permitted under the new El Salvadoran law.

“Issuers are eager to access the digital asset market, attracted by the speed, cost efficiencies and ease of issuance compared to traditional assets. The digital asset market is a market which, at over $1 trillion in size, is still in its infancy, but is growing tremendously quickly," Bitfinex explained.

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