The derivatives arm of crypto exchange Bitfinex has secured a Digital Asset Service Providers (DASP) license to operate in El Salvador.
In a Jan. 7 statement shared with Cointelegraph, Bitfinex Derivatives said with the approval of the DASP license, it will relocate from Seychelles to the Central American nation.
“This critical transition represents a defining moment for Bitfinex Derivatives and highlights El Salvador’s rise as a global financial hub,” said Bitfinex Derivatives chief technology officer Paolo Ardoino.
The firm lauded El Salvador’s continued efforts in developing new crypto frameworks, saying the move aligned with its broader goals to deliver financial services in the region.
El Salvador has been rapidly pushing through new digital asset regulations in a bid to transform the nation into a crypto hub
After the country passed its Digital Assets Securities Law in January 2023, Bitfinex Securities secured a local DASP license in April.
El Salvador’s licensing regime allows companies to tokenize funds, debt, equity, and real estate, simplifying the process of raising capital for companies to issue tokens, fund investments and projects, and offer returns to investors.
On Nov. 19, 2024, the firm debuted a tokenized public offering of US Treasury bills (T-bills) under El Salvador’s legal framework.
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In July 2024, Bitfinex Securities had to refund investors who participated in a Hilton hotel tokenization effort after failing to raise the minimum $500,000 required to continue the venture.
The project, which marked the first public offering of digital debt assets in El Salvador, only mustered $342,000 from investors before the first deadline — barely 5% of the $6.25 million it was looking to raise.
A 3D-generated image of the planned Hilton hotel. Source: El Economista
The funds were intended to finance the construction of the Hampton by Hilton hotel, sized at 4,500 square meters across five levels with 80 rooms, a restaurant, working area, swimming pool, gym and garden.
To own a slice of the Hilton hotel, investors had to make a minimum $1,000 investment to purchase the “HILSV” token on the Bitcoin layer 2 Liquid Network.
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