Through the derivatives division, crypto exchange Bitfinex has obtained a Digital Asset Service Provider (DASP) license, enabling them to legally conduct operations within El Salvador.
According to a statement made on January 7th and shared with CryptoMoon, Bitfinex Derivatives announced that they plan to move their operations from Seychelles to a Central American country, following the approval of their DASP license.
As the chief technology officer at Bitfinex Derivatives, I’m observing that this significant shift marks a pivotal point for our platform. This transition underscores El Salvador’s ascension as a leading global financial center.
The company praised El Salvador for its ongoing work in creating fresh cryptocurrency guidelines, as this action aligns with their wider objectives to provide financial services within the region.
As an analyst, I’ve been closely observing the dynamic landscape of El Salvador. The country is aggressively implementing fresh digital asset regulations with the aim of metamorphosing it into a thriving cryptocurrency center.
Following the nation’s enactment of the Digital Assets Securities Law in January 2023, Bitfinex Securities obtained a local DASP license in April. (DASP stands for Digital Asset Securities Platform)
In simpler terms, El Salvador’s regulatory framework enables businesses to convert assets like funds, debts, shares, and property into digital tokens. This makes it easier for companies to seek funding through token issuance, invest in projects, and provide profits to investors.
On November 19, 2024, the company introduced a public offering of tokenized U.S. Treasury bills (T-bills), which complied with El Salvador’s legal system. In simpler terms, they launched a digital version of T-bills that adhered to the laws of El Salvador on that specified date.
By July 2024, Bitfinex Securities was compelled to reimburse investors who took part in a Hilton hotel tokenization project due to their inability to gather the necessary minimum of $500,000 to carry on with the business venture.
In a disappointing turn of events, the initial fundraising goal for the project, which pioneered digital debt asset sales in El Salvador, fell significantly short. The project managed to gather merely $342,000 from investors before the deadline—a mere 5% of the targeted $6.25 million.
The money was earmarked for building a Hampton by Hilton hotel, spanning approximately 4,500 square meters over five floors, featuring 80 guest rooms, a dining establishment, work spaces, a swimming pool, fitness center, outdoor gardens, and more.
To acquire a piece of the Hilton Hotel, investors were required to invest a minimum of $1,000 by purchasing the “HILSV” token, which is issued on the Bitcoin‘s secondary network called Liquid.
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2025-01-08 08:36