El Salvador on Tuesday grants crypto exchange Bitfinex, the license for digital assets service provider (DASP) , making it the first fully-regulated digital asset exchange of the world, that will enable the issuance and trading of innovative real-world tokenized assets such as equities and bonds.
With this Bitfinex becomes the world’s first international digital asset platform to receive approval and is to be licenced as a Digital Asset Service Provider under El Salvador’s ground-breaking new Digital Assets Issuance Law, that regulates digital securities and created a framework for the Central American country to launch bitcoins-backed bonds, known as “Volcano Bonds”.
The chief technology officer at Bitfinex Paolo Ardoino who worked closely with El Salvadour on bitcoin bond project stated ,
We are delighted to be the first company to be awarded this license,It will enable Bitfinex Securities to facilitate the issuance and secondary trading of assets with clearly defined rights and obligations as outlined in the new digital asset regulatory regime.
The tokenized shares and yield-bearing assets are two among the many products whose demand have surged after the passing of legislature, says Jesse Knutson – Head of operation at Bitfinex securities ,
Issuers are eager to access the digital asset market, attracted by the speed, cost efficiencies, and ease of issuance compared to traditional assets. The digital asset market is a market which, at over $1 trillion in size, is still in its infancy but is growing tremendously quickly
The Latin American country formerly known as murder capital of the world is already a trailblazer in the crypto industry and under the rule of President Nayib Bukele, became the first country in the world to embrace bitcoin as a legal tender. The government further launched several projects such as accumulating BTC on macroeconomic level and designing a high tech “ Bitcoin City ” for the promotion of digital assets in the succeeding years.
The development bestows an exclusive opportunity for both businesses and individuals to capitalize on the benefits of issuing, investing and trading in digital assets in El Salvador’s favorable regulatory environment, and to capture significant cost and efficiency advantages compared to the process of raising capital in traditional finance.
Highlighting the importance of the new license, Bitfenex Freedom Manifesto states that the license marks a new milestone for Bitfinex in its long-term strategy to deliver financial freedom and inclusion to communities and countries around the world.
The announcement brings forth a major boost to the Bitfinex group’s ceaseless efforts to assist financial freedom and inclusion in El Salvador and beyond, offering not only large corporations but also smaller, otherwise-marginalized companies, as well as retail investors, the opportunity to participate in global markets.
The progress once again spotlights El Salvador’s rapid metamorphosis to become a regional and global hub for high-tech financial innovation, creating an alluring environment for businesses to relocate to from around the world.