Bitfinex Derivatives has taken a big step forward by obtaining a Digital Asset Provider (DASP) license in El Salvador. With this move, the platform can now offer derivatives trading services in Latin America. With this license, Bitfinex plans to take advantage of El Salvador’s support for crypto to set up shop in the area.
A Regulatory Game Changer?
Bitfinex Derivatives is able to operate within the regulated framework of El Salvador, which was established by the Law on the Issuance of Digital Assets, thanks to the DASP license. The law, which came into effect in early 2023, was intended to attract digital goods companies while maintaining legal clarity and transparency.
For Bitfinex, this framework is a game changer. Paolo Ardoino, CTO of Bitfinex, described the license as an important step that enables the company to release new products to a wider audience.
📢 Bitfinex Derivatives has been awarded a Digital Asset Service Provider license in 🇸🇻 El Salvador – a big step in our global expansion.
The new license supports El Salvador as an important financial center for digital assets.
Find out more for yourself: pic.twitter.com/79hdbBHONX– Bitfinex (@bitfinex) January 7, 2025
El Salvador’s aggressive approach to cryptocurrencies has established the country as a blockchain startup. Since adopting Bitcoin as official currency in 2021, the country has established itself as a global leader in the use of the digital asset. The addition of Bitfinex to the list of businesses operating under the Law on the Issuance of Digital Assets reinforces El Salvador’s status as a crypto-friendly destination.
Latin America’s Cryptocurrency Boom
Bitfinex time is right. Latin America has seen an increase in the use of bitcoin, driven by economic problems such as currency devaluation and currency volatility. A large number of people in the region, especially the unbanked, are using digital assets for financial inclusion and stability.
Bitfinex aims to capitalize on this growing demand by offering products such as perpetual contracts and other derivatives tailored to the various needs of users.
This strategic expansion is in line with Bitfinex’s mission to provide world-class digital asset solutions. By establishing a strong presence in El Salvador, the platform is well placed to serve the rapidly growing Latin American cryptocurrency market.
What Does It Mean About Industry?
The Bitfinex action highlights the need for well-defined rules to promote innovation. In addition to providing certainty for the operation of the crypto market, the DASP license establishes a standard for other countries considering such systems. As El Salvador promotes the use of bitcoin, its legal environment may influence global trends in digital asset businesses.
For Bitfinex, this is more than just regional expansion; it is a declaration of intent to lead in the ever-changing cryptocurrency field. With El Salvador as a launch pad, the company is ready to create new opportunities and establish benchmarks for the future of derivatives trading in the cryptocurrency market.
Featured image from Pexels, chart from TradingView