Bitfinex Derivatives, the derivatives arm of cryptocurrency exchange Bitfinex, announced that it has obtained a Digital Asset Service Provider (DASP) license in El Salvador and plans to move its operational headquarters to the country.
El Salvador becomes new base for Bitfinex Derivatives
The latest announcement from Bitfinex Derivatives states that the company has obtained a DASP license in El Salvador and plans to relocate the company to the country from Seychelles.
In other words, the company will be able to more efficiently tokenize real-world assets (such as stocks and bonds) and conduct issuance and secondary market transactions in accordance with El Salvador’s digital asset issuance law.
Bitfinex Derivatives CTO Paolo Ardoino tweeted:
The move represents an important milestone in the company’s development and further demonstrates El Salvador’s position as Latin America’s next financial hub.
At the same time, he also praised El Salvador’s efforts in crypto legislation, pointing out that it is consistent with its long-term goal of providing financial services in Latin America.
Digital asset regulations help economic development
Since the passage of the Digital Asset Securities Law in January 2023, El Salvador has made significant progress in regulations and application promotion in the encryption field, and has simplified the process for companies to issue tokens to raise funds, fund projects, and provide compensation to investors. It provides new financing channels for corporate funds, debt, equity and real estate.
A few weeks ago, this country, which continues to implement Bitcoin fiscal strategies, released a series of Bitcoin education promotion plans not long after it had just received a US$1.4 billion loan program from the International Monetary Fund (IMF). Forgot to add a few coins.
(Just after reaching an agreement with the IMF, El Salvador turned around and bought more Bitcoins)
First asset tokenization plan frustrated
In April 2023, after Bitfinex Securities, another branch of Bitfinex, obtained the DASP license in El Salvador, it also committed to helping the country raise more than US$6.25 million through the first public offering of tokenized securities to build airport hotels and shopping malls. Basic entertainment facilities.
However, the plan failed to advance smoothly. In July 2024, Bitfinex Securities’ project to tokenize the hotel was forced to withdraw money because it did not reach the minimum fundraising threshold. The project ultimately raised just $342,000, less than 5% of what was originally expected.
(El Salvador’s first tokenized debt raising failed! BTC daily fixed investment continues)
Looking ahead, however, Bitfinex Derivatives’ decision to relocate to El Salvador is still symbolic of the country becoming an important pillar of cryptocurrency development in the region. Despite the challenges, El Salvador’s crypto regulations and financing model have already paved the way for future economic innovation and provide a valuable reference example for the rest of Latin America.
This article Derivatives platform Bitfinex Derivatives obtains El Salvador DASP license and will move to El Salvador first appeared on Chain News ABMedia.