• Bitfinex Securities has been granted the first digital asset service provider license from El Salvador’s Digital Assets Commission.
• The new Digital Assets Issuance Law passed by National Congress provides a framework for crypto firms to issue real-world tokenized assets.
• Bitfinex’s utility coin LEO currently hovers at $3.37 in the daily chart.
Bitfinex Securities Receives Crypto License from El Salvador
Bitfinex Securities has received the first digital asset service provider license from El Salvador’s Digital Assets Commission, the authority currently regulating crypto assets in the country. This licensing regime comes under the new Digital Assets Issuance Law passed by National Congress that came into force in January 2023.
Crypto-Friendly Policies Encourage Innovation
The bill aims to accelerate financial innovations in the state, allowing crypto firms to issue real-world tokenized assets. El Salvador expressed a positive stance on cryptocurrencies with its move to become the first-ever country to give Bitcoin legal tender in 2021. With its ambitions to make the Latin American country a digital hub, the government paved the way for financial freedom by implementing crypto-friendly policies. In turn, crypto platforms around the globe are settling their shops in the country due to regulatory clarity.
Bitfinex’s Utility Coin Performance
Speaking on the achievement, Bitfinex said in a blog post; El Salvador’s Digital Asset licence is a significant step forward for tokenised securities as an asset class. The licence opens the door wide open for entities like small companies and governments to raise capital in a regulated market with clear rules set forth under the DASL…Bitfinex’s utility coin LEO currently hovers at $3.37 in the daily chart.
Independence of Bitifinex Securities
The announcement affirmed that Bitfinex Securities is a new entity that will function differently from other similar platforms established around the globe. In other words, Bitfinex Securities will run independently from Bitfinex Securities AIFC, a platform controlled by Bitfinex Securities Limited. The license granted to firm gives it legal authorization to issue tokenized assets such as bonds and equities and facilitate their trading…Expressing his concerns over products developed under new regulatory regime, Jesse Knutson head of operations at Bitifinex Securities added that considerable amount of issuers and investors are “eager to access digital asset market, attracted by speed cost efficiencies and ease of issuance compared traditional assets.”
Outlook
The licenses granted by El Salvador provide developers with even more opportunities than ever before which can help them explore innovative solutions leveraging blockchain technology and cryptosystems with security measures as per international standards set forth..In conclusion this could lead towards emerging markets becoming more transparent with accelerated economic growth through increased financial activity and investments within countries like El Salvador who have taken steps towards embracing cryptocurrency regulations..
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