Bitfinex Derivatives is relocating its operations to El Salvador following the acquisition of a Digital Asset Service Provider (DASP) license in the country in 2023.
The platform's derivatives services will now be provided through Bitfinex Derivatives El Salvador S.A. de C.V., and users wishing to continue accessing the offerings must accept updated terms of service, the exchange said Monday.
"With this license, 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 posted on X.
The company's strategic shift sees its derivatives division move from the Seychelles and comes after it was granted a Digital Asset Service Provider (DASP) license in April 2023. Bitfinex CTO Paolo Ardoino highlighted that the license enables Bitfinex Securities to facilitate the issuance and secondary trading of assets, backed by defined rights and obligations, under El Salvador’s new digital asset regulatory framework.
"The licence means that a whole range of entities, from small companies to governments, can raise capital in a regulated environment, and tap into a class of investors that are extremely comfortable with crypto assets and tokenized securities, which represents a market of over $1 trillion with a peak of $3 trillion," Ardoino said.
El Salvador has garnered international attention since it became the first country to adopt bitcoin as legal tender in 2021, with the aim of promoting financial inclusion and integrating digital assets into its broader economy. The nation's stance on digital assets has led to increased interest from cryptocurrency businesses and investors looking to tap into the country’s growing digital economy.
However, in mid-December 2024, the International Monetary Fund (IMF) and El Salvador reached an agreement that could limit some domestic bitcoin-related activities in exchange for a significant financing package.
Under this agreement, El Salvador is set to receive a $1.4 billion loan through the IMF’s Extended Fund Facility, with additional financial support expected from the World Bank and other regional development banks, bringing the total financial package to over $3.5 billion.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
