El Salvador Begins Granting Licences to Crypto Firms, Bitfinix Becomes First Beneficiary

This licence will allow Bitfinex to provide crypto related services in the central American nation, in accordance with the legal provisions of the country.

Written by Radhika Parashar, Edited by Manas Mitul | Updated: 12 April 2023 14:15 IST

El Salvador Begins Granting Licences to Crypto Firms, Bitfinix Becomes First Beneficiary

Photo Credit: Facebook/ Nayib Bukele

El Salvador officiated BTC as a legal tender for daily payments in 2021

Highlights

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Countries around the world, that are ready to give the crypto sector a fair chance, are beginning to take the licencing of crypto firms as a priority. El Salvador has become the latest nation to join the list of others that have been granting operational approvals to crypto firms wishing to set up shop within their territories. Crypto exchange Bitfinex has become the first crypto firm to have secured an official licence from El Salvador to operate as a digital asset service provider in the nation.

This licence will allow Bitfinex to provide crypto related services in the central American nation, in accordance with the legal provisions of the country.

“Bitfinex Securities will provide services which will allow access to new sources of funding, while widening investor access to a host of innovative financial products, including blockchain-based equities and bonds. Simply put, we'll offer an array of groundbreaking new tools which provide new opportunities to underserved companies, entities, and investors,” the Taipei-headquartered exchange wrote in its blog post.

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@bitfinex Securities receives El Salvador's inaugural Digital Asset License. Pioneering change in global finance with #crypto, unlocking financial freedom and opportunities for all.

Read our blog and find out more :point_down:https://t.co/nn1uRASfRT pic.twitter.com/Eq6HdL25UI
— Bitfinex Securities (@BFXSecurities) April 11, 2023

El Salvador, which in 2021 became the first country in the world to accept Bitcoin as a payment alternative, has established itself as a pro-crypto country.

The country mandated licencing for crypto firms this January, in order to bring more regulations to govern crypto-related activities transpiring within in territory.

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The licence will help Web3 entities to raise capital in a regulated market with clear rules in El Salvador. The framework also details rules around providing and engaging with tokenised securities like tokenised shares, yield-bearing assets, and other investment tools.

"Bitfinex Securities will provide services which will allow access to new sources of funding, while widening investor access to a host of innovative financial products, including blockchain-based equities and bonds. We remain committed to El Salvador and President Bukele's vision for Bitcoin adoption,” the company's blog post further noted.

Salvadoran president Nayib Bukele has been taking active steps to make the process of BTC-mining eco-friendly with using natural energy sources to power up the facilities. Bukele's bold pro-Bitcoin approach has been subject to both, admiration as well as criticism.

While the International Monetary Fund (IMF) has advised El Salvador to reconsider its close financial association with a volatility-ridden digital asset such as Bitcoin, crypto supporters like Binance CEO Changpeng Zhao among others have seen promise in Bukele's approach around crypto.

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Further reading: Cryptocurrency, El Salvador, Bitcoin, Bitfinix

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More