Bitfinex Derivatives, a division of the popular cryptocurrency exchange, has announced plans to move to El Salvador. The development is coming after the firm secured its Digital Asset Service Providers (DASP) license in the country.
The company’s decision is coming at a time when crypto is booming in the country, with the firm fixed on leveraging the country’s financial standing in Latin America in its quest to become a leader in crypto adoption.
Bitfinex Derivatives makes inroads into El Salvador
El Salvador’s favorable stance concerning cryptocurrencies has caught the attention of firms and investors alike. The country announced Bitcoin as a legal tender, becoming the first in the world to make such a move. The move has also triggered enthusiasm in the crypto industry among locals, as the country continues to propose policies to help the sector.
With its DASP license, Bitfinex can provide an array of services to locals, including consultations and other financial services. The company has hailed the country’s favorable stance regarding the crypto sector, hailing its crypto frameworks, noting that it aligns with Bitfinex’s goals and visions.
The Chief Technology Officer of Bitfinex, Paolo Ardoino, stressed the need for the move in a recent interview. He noted that it is a great step for the firm while noting that El Salvador is a good location to achieve this step. “This critical transition represents a defining moment for Bitfinex Derivatives and highlights El Salvador’s rise as a global financial hub,” Ardoino said.
El Salvador’s quest to become a crypto hub
El Salvador has developed some policies to establish itself as a crypto hub. Bitfinex Derivatives secured a license in April 2023, months after the country announced its Digital Assets Securities Law in January.
The country has a strict policy involving fundraising, and investing procedures, including allowing businesses to issue tokens, raise funds, and give returns to investors. The move has also drawn companies with Bitfinex Derivatives already planning to issue tokenized issuance of US Treasury notes in November.
However, this is not the company’s first initiative, as its securities division attempted a Hilton hotel tokenization program. The project required investors to pay $1,000, and it aimed to raise funding through selling the HILSV token on Liquid.
The initiative was supposed to cater to the construction of the Hampton by Hilton Hotel. The hotel was earmarked at 4,500 square meters, with about 80 rooms as well as other facilities such as gym rooms, restaurants, and others. However, the project failed to materialize as the $500,000 threshold was not met, leading to the firm reimbursing investors.