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Bitfinex Secures El Salvador’s DASP License, Expands Regulated Offerings

bitfinex el salvador dasp license

Key Takeaways:

  • Bitfinex gained a DASP license in El Salvador, enabling regulated crypto derivatives trading.
  • The license enforces AML, KYC compliance, transparency, and investor protections under El Salvador’s digital asset laws.
  • Bitfinex’s approval strengthens El Salvador’s crypto hub status, boosting blockchain services and adoption.

Bitfinex Derivatives has received a Digital Asset Service Provider (DASP) license from El Salvador’s National Commission on Digital Assets (CNAD). Notably, this approval allows Bitfinex to operate legally as a regulated crypto derivatives exchange in the country.

The DASP license requires strict compliance with anti-money laundering (AML) and know-your-customer (KYC) policies. It also mandates transparency in financial reporting and investor protection.

Accordingly, the license positions Bitfinex as one of the global platforms authorized under El Salvador’s digital asset laws. Hence, it enables the exchange to offer cryptocurrency derivatives trading and custodial services in compliance with the country’s regulatory standards.

In a January 7 post on X, Bitfinex stated that the license reinforces its commitment to advancing regulated cryptocurrency markets globally. As highlighted in the post, this milestone achievement is “a monumental step in our global expansion”.

According to a company release, Bitfinex Derivatives El Salvador S.A. de C.V. will now manage derivatives trading under El Salvador’s regulatory framework. Users must accept updated terms to continue accessing services. “To continue to use the Derivative Services on or after this date, you will be required to accept the Bitfinex Derivatives El Salvador S.A. de C.V. terms of service,” said Bitfinex in the release.

In a nutshell, the move aligns with local compliance standards, ensuring legal clarity and expanding cryptocurrency derivatives within El Salvador’s regulated market.

Bitfinex in El Salvador’s Regulatory Framework and Compliance

El Salvador passed its Digital Asset Issuance Law in January 2023, establishing a framework for crypto businesses. The law supports Bitcoin adoption following its recognition as legal tender in 2021.

El Salvador, led by President Nayib Bukele, has embraced Bitcoin, holding over 6,000 BTC worth $560 million, with plans for further expansion in 2025. Interestingly, the nation’s “Bitcoin Office” reported a January 7 purchase of 1 bitcoin bringing the reserve holdings to 6,011 bitcoins.

For context, El Salvador’s efforts to promote crypto innovation align with Bitfinex’s broader expansion strategy. Moreover, the licensing approval is expected to boost El Salvador’s position as a crypto-friendly hub and attract more blockchain firms. Analysts believe it sets a precedent for integrating digital asset markets into mainstream finance.