Bitfinex Derivatives, a leading crypto exchange arm, has successfully obtained a Digital Asset Service Providers (DASP) license from El Salvador, marking a significant milestone for the company. This license paves the way for Bitfinex to relocate its operations from Seychelles to El Salvador, a move that emphasizes the Central American nation’s growing prominence as a global financial hub.
📢 Bitfinex Derivatives has been awarded a Digital Asset Service Provider licence in 🇸🇻 El Salvador – a monumental step in our global expansion.
— Bitfinex (@bitfinex) January 7, 2025
The new licence supports El Salvador as a key digital asset financial centre.
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The approval of the DASP license underscores El Salvador’s commitment to fostering a crypto-friendly environment. Bitfinex Derivatives, known for its advanced digital asset trading services, highlighted that the relocation aligns with its broader vision to expand financial services in the region. According to Paolo Ardoino, CTO of Bitfinex Derivatives, this transition is a defining moment for the firm, reinforcing the importance of El Salvador’s efforts to develop progressive crypto frameworks.
El Salvador has been at the forefront of digital asset regulation, particularly since it passed the Digital Assets Securities Law in January 2023. This legislation facilitated the issuance of DASP licenses, with Bitfinex Securities securing its license in April 2023. The country’s regulatory environment enables companies to tokenize various assets, including funds, debt, equity, and real estate, simplifying capital-raising processes and providing innovative ways to offer returns to investors.
One of the country’s noteworthy moves in the digital asset space was the tokenized public offering of U.S. Treasury bills (T-bills) in November 2024, conducted under El Salvador’s legal framework. However, not all ventures have been successful. Bitfinex Securities’ Hilton hotel tokenization project struggled to meet its fundraising goals, ultimately refunding investors after raising only $342,000 out of the required $6.25 million.
With its new DASP license, Bitfinex Derivatives aims to strengthen its position in El Salvador and continue contributing to the nation’s growing digital asset market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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