Bitfinex receives first digital asset license in El Salvador

Under the recently established regulatory framework in El Salvador, crypto exchange Bitfinex is the first international digital asset provider to obtain a license allowing it to issue and trade secondary assets.

Bitfinex has been granted a digital asset provider license thanks to the new Digital Asset Issuance Law passed in El Salvador in early January, part of the country’s intention to launch bitcoin-backed bonds, also known as Volcano Bonds.

Related: El Salvador passes digital assets law for Bitcoin-backed bonds

According to the announcement, the license was granted by the National Digital Asset Commission in El Salvador on April 11. Bitfinex is thus “the world’s first international digital asset platform to receive approval to be licensed as a Digital Asset Service Provider” operating “under El Salvador’s ground-breaking” new law:

Paolo Ardoino, Bitfinex CTO who worked closely on the bitcoin bonds project, added:

We are delighted to be the first company to be awarded this licence. 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.

Bitfinex Securities El Salvador, S.A. De C.V., a newly established entity in El Salvador, will allow global companies to issue a wide variety of digital assets such as equities, bonds, and other financial instruments, while ensuring complete compliance with regulatory requirements under El Salvador law.

Jesse Knutson, Head of Operations at Bitfinex Securities, said:

We see considerable demand both from issuers and investors for the products made possible under the new regulations, which include tokenized shares, yield-bearing assets, and other investment products.

Bitfinex Securities El Salvador will work independently from the Bitfinex group’s current platform, Bitfinex Securities AIFC, which is managed by Bitfinex Securities Limited.