The derivatives division of Bitfinex, a prominent cryptocurrency exchange, has obtained a Digital Asset Service Providers (DASP) license, allowing it to operate in El Salvador. Following this approval, Bitfinex Derivatives plans to move its operations from Seychelles to Central America, signifying a strategic shift for the company and underscoring El Salvador’s ambition to establish itself as a significant player in the global financial landscape.
This transition reflects the ongoing evolution of El Salvador’s cryptocurrency regulations. Over the past year, the country has actively worked to create a regulatory framework that facilitates the growth of digital assets. The establishment of the DASP license is part of a broader initiative to position the nation as a center for digital finance. Earlier in 2023, the introduction of the Digital Assets Securities Law enabled Bitfinex Securities to secure its local license, laying the groundwork for this latest move.
El Salvador’s new licensing framework grants businesses the ability to tokenize various forms of assets, including real estate and equity, which streamlines the process for capital raising. This regulatory clarity is designed to foster innovation and attract investment, enabling companies to issue tokens that could provide returns to investors.
In late 2024, Bitfinex made headlines with its inaugural tokenized public offering of U.S. Treasury bills (T-bills), which was executed under El Salvador’s legal framework. However, earlier initiatives faced challenges. Notably, a project aimed at financing a Hilton hotel revealed difficulties in attracting sufficient investment. Despite targeting a minimum raise of $500,000, the endeavor only captured $342,000, leading to a refund for participants.
As the country continues to refine its digital asset regulations, Bitfinex’s move is indicative of the broader trends shaping the financial landscape in El Salvador, potentially paving the way for further developments in cryptocurrency and digital finance.
