Bitfinex Moves Derivatives Business from the Seychelles to El Salvador

Nearly two years after securing a Digital Asset Service Providers (DASP) license in El Salvador, Bitfinex has moved its derivatives business to the crypto-friendly Central American country, the crypto derivatives giant announced today (Wednesday). Previously, it offered crypto derivatives from its base in the Seychelles.

From the Seychelles to El Salvador

“Going forward, the Derivatives Services on the Derivative Site will be provided by Bitfinex Derivatives El Salvador S.A. de C.V., an entity established and licensed in El Salvador,” the crypto exchange noted in its official announcement.

It has also asked its users to accept the terms and conditions under the new entity to continue trading derivative instruments on the exchange.

🌎 With this licence, we’re proud to relocate Bitfinex Derivatives to El Salvador - a nation leading the charge in building a robust digital economy.This move strengthens our mission to deliver innovative trading solutions, especially to underserved regions in Latin America. ✅

Bitfinex secured the El Salvador license in April 2023, only three months after the country, led by a crypto-friendly president, passed the Digital Asset Issuance Law. Another popular company that also obtained an El Salvador license is Binance.

The crypto licensing regime in El Salvador allows companies to tokenize funds, debt, equity, and real estate. It also simplifies the process of raising capital, enabling companies to issue tokens, fund investments and projects, and offer returns to investors.

Bitfinex’s other product under the El Salvador license was launched last November when it debuted tokenized US T-bills denominated in US dollars.

However, Bitfinex Securities had to refund investors for another tokenization effort held in July 2024 after it failed to raise the minimum target of $500,000. Those funds were intended to finance the construction of the Hampton by Hilton Hotel.

El Salvador’s Push to Become a Crypto Hub

Under President Nayib Bukele's leadership, El Salvador has emerged as a crypto-friendly country, attracting companies in the industry with clear rules. The country also became the first in 2021 to make Bitcoin legal tender and holds a substantial amount of the cryptocurrency in reserves.

However, the country’s crypto policy has been criticised by many global economists. The International Monetary Fund also expressed concerns about El Salvador's adoption of Bitcoin as legal tender and its broader cryptocurrency policies.

Apart from El Salvador, Dubai is also becoming a favourite cryptocurrency hub. Many big and small crypto companies are now licensed in the UAE. Recently, Deribit migrated all spot and derivatives trading activities from Panama to its Dubai-based entity.