Key Insights
- Bitfinex relocates its derivatives operations from Seychelles to El Salvador following DASP license acquisition
- The move follows El Salvador’s crypto-friendly stance and Digital Asset Issuance Law implementation
SAN SALVADOR (MarketsXplora) – Cryptocurrency exchange Bitfinex announced on Tuesday it has relocated its derivatives operations from Seychelles to El Salvador, nearly two years after obtaining its Digital Asset Service Providers (DASP) license in the Central American nation.
The move requires users to accept new terms and conditions under Bitfinex Derivatives El Salvador S.A. de C.V., the entity now handling the exchange’s derivative services.
Bitfinex secured its El Salvador license in April 2023, shortly after the country implemented its Digital Asset Issuance Law. The licensing framework permits companies to tokenize various assets including funds, debt, equity, and real estate, while streamlining capital raising through token issuance.
The exchange has already utilized its El Salvador license to launch tokenized US T-bills denominated in US dollars in November. However, a subsequent tokenization project in July 2024 for the Hampton by Hilton Hotel construction had to refund investors after failing to meet its $500,000 minimum target.
El Salvador, under President Nayib Bukele’s leadership, has positioned itself as a crypto-friendly jurisdiction since becoming the first country to adopt Bitcoin as legal tender in 2021. The nation has attracted major industry players, including Binance, which also holds a local license.
Despite El Salvador’s crypto-forward stance, the policies have faced criticism from global economists, with the International Monetary Fund expressing concerns about the country’s Bitcoin adoption and broader cryptocurrency initiatives.
The relocation follows a broader industry trend, with Dubai emerging as another preferred cryptocurrency hub. Recently, derivatives exchange Deribit moved its trading operations from Panama to its Dubai-based entity, highlighting the growing competition among jurisdictions to attract cryptocurrency businesses.