YEREVAN (CoinChapter.com) — Bitfinex Derivatives has secured a Digital Asset Service Providers (DASP) license to operate in El Salvador, a step that permits the company to offer its derivatives services under local regulations.
In a statement dated Jan. 7, the company announced plans to relocate its operations from Seychelles to El Salvador following the license approval. Paolo Ardoino, Chief Technology Officer of Bitfinex Derivatives, described the move as significant for the company and reflective of El Salvador’s efforts to establish itself as a global financial hub.
El Salvador’s DASP license allows companies to tokenize assets such as debt, equity, funds, and real estate. It simplifies capital-raising processes, enabling companies to issue tokens, fund investments, and offer returns to investors.
Relocation Reflects Growing Digital Asset Frameworks
Bitfinex Derivatives’ relocation comes as El Salvador continues to implement new digital asset regulations. The country introduced its Digital Assets Securities Law in January 2023, paving the way for companies like Bitfinex to obtain licenses and conduct operations legally.
Digital Assets Law Approval. Source: AsambleaSV
In April 2023, Bitfinex Securities became one of the first companies to secure a DASP license under this law. The firm has praised El Salvador’s proactive approach to digital asset frameworks, aligning its operations with the region’s growing crypto ecosystem.
Bitfinex’s decision to relocate emphasizes El Salvador’s efforts to attract businesses by offering legal clarity and support for crypto-related ventures.
Tokenized Treasury Bills and Hotel Project Challenges
In November 2024, Bitfinex Securities launched a tokenized public offering of U.S. Treasury bills (T-bills) under El Salvador’s licensing regime. This offering showcased the application of the country’s digital asset framework, enabling tokenized investments in traditional financial instruments.
Earlier in July 2024, the firm faced challenges with a separate tokenization project involving a Hilton hotel. Bitfinex Securities was required to refund investors after failing to raise the minimum $500,000 needed to proceed. The project, which aimed to tokenize digital debt for the construction of a 4,500-square-meter Hampton by Hilton hotel, raised only $342,000, far below the $6.25 million target.
Hampton by Hilton Project. Source: El Economista
The funds were intended for building an 80-room hotel with a restaurant, swimming pool, gym, and garden. Despite the setback, the initiative highlighted the potential of tokenized investments in El Salvador’s evolving digital asset landscape.
El Salvador’s licensing system continues to attract international crypto firms by offering opportunities to tokenize and trade various assets. By enabling the issuance of digital tokens for investment purposes, the country seeks to create a more accessible financial system.
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