April 12, 2023

Bitfinex Gets Cryptocurrency License in El Salvador

Bitfinex Becomes First Exchange to Officially Receive Crypto License in El Salvador

We recently reported that El Salvador had become the first country in the world to adopt Bitcoin as a legal currency. Now, it seems that the Central American nation is following through with its commitment of encouraging the adoption of cryptocurrency. Bitfinex has become the first digital currency exchange registered in El Salvador after it received its official license from the government.

The move comes just a few weeks after lawmakers introduced a new law which officially recognizes Bitcoin as legal tender. The bill passed with an overwhelming majority of 62 out of 84 votes and came into effect almost immediately.

Bitfinex and LEO Foundation Team Up to Obtain License

In a joint-effort between Bitfinex and LEO Foundation, the former has managed to obtain an official license from the government. The license, which has been granted by El Salvador’s Superintendencia de Valores, is intended for companies operating in financial services related activities.

The license enables Bitfinex to start operations related to custody, trading, financial services and other businesses related to digital assets. To further demonstrate its commitment towards making this partnership successful, Bitfinex has decided to donate $3 million worth of BTC towards educational initiatives in El Salvador.

Crypto Exchanges Making Inroads into Latin America

At present, Latin America is home to over 173 million active crypto users across various countries. In addition to them actively participating in buying and selling digital currencies they also have access to various crypto-related services such as online exchanges, remittance companies and more. By obtaining this official license, it looks like Bitifinex wants aim at a bigger piece of this potentially lucrative market.

"This licensing agreement marks an important milestone for us here at Bitfinex," Giancarlo Devasini, CFO of Bitfinex and Tether Ltd said regarding the development. "As we expand our global presence into new jurisdictions, we continue our mission of making crypto accessible by providing users around the world with a highly liquid platform."

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