In recent years, El Salvador has made significant efforts to become the crypto hub of Latin America. Today, two and a half years after the adoption of Bitcoin as a legal currency in the country, Bitfinex Securities announced the launch of Bitfinex Securities El Salvador SA, the first platform to offer tokenized securities.
Launching the first licensed digital asset platform in El Salvador
On January 31, 2024, Bitfinex Securities became official the first registered and licensed digital asset service provider launched in El Salvador, and is now accepting applications from clients.
Last year, El Salvador passed the Digital Asset Securities Law, allowing Bitfinex Securities to apply for and receive the first digital asset license under this regulatory framework.
This new law, as Juan Carlos Reyes, president of the National Commission for Digital Assets (NCDA), explained:
(…) have separated the regulation of digital assets from the traditional financial regulator and established the National Digital Asset Commission, which oversees the supervision and regulation of the ecosystem.
In addition, the NCDA Chairman recalled the positive experiences with the company and praised the company for its “high regulatory standards” and “world-class” compliance knowledge.
In the announcement, Bitfinex Securities highlighted the “substantial leap for financial innovation in Latin America” that the development of the tokenized securities industry in El Salvador suggests. The company also announced that it has established a pipeline of potential releases that are expected to hit the market throughout the year.
Approval of Bitcoin ETF offers an optimistic outlook
“We are pleased to announce the launch of Bitfinex Securities in El Salvador,” said Paolo Ardoino, Chief Technology Officer of Bitfinex Securities. He expressed his enthusiasm to join the “vanguard of this financial revolution,” stating:
Not only is this an important market for Bitfinex given its adoption of Bitcoin as legal tender and the promotion of a Bitcoin-based economy, but it also gives El Salvador the opportunity to attract global investment flows as issuers offer competitively priced securities.
The launch of the Bitfinex Securities El Salvador platform follows the approval of spot Bitcoin Exchange-Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC) on January 10. The successful launch of Bitcoin-based ETFs in the US creates the The company expects significant demand for exposure to other regulated digital asset services.
Jesse Knutson, Head of Operation at Bitfinex Securities, highlighted in his statement the progress El Salvador has made since 2021:
Following El Salvador’s groundbreaking policy work and legislative frameworks over the past two and a half years, the official launch of Bitfinex Securities El Salvador is another important step in the evolution of capital markets and an important global proof of concept.
Knutson also expressed optimism about the “recent rise in institutional investor interest in Bitcoin-focused financial products.”
Bitcoin is trading at $43,343.6 in the hourly chart. Source: BTCUSDT on TradingView.com
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