A Seychelles-based crypto platform, Bitfinex Derivatives, has secured a DASP license (Digital Asset Service Provider) in El Salvador, making a significant entry into the crypto-centric Latin American country. The platform will operate through a newly established subsidiary, Bitfinex Derivatives El Salvador S.A. de C.V.
According to an official company blog post, Bitfinex Derivatives will offer various derivative services, such as perpetual futures and options, to attract retail and institutional crypto traders. Existing users will be required to accept the updated terms of service to access the offerings.
DASP License Allows Company to Relocate to El Salvador
The firm’s move to set up the Bitfinex Derivatives El Salvador subsidiary highlights the Latin American country’s growing position as a global leader in the cryptocurrency industry. El Salvador became the first country to adopt Bitcoin as legal tender in 2021 and has continued to create a supportive environment for crypto-centered businesses.
In an announcement on X, the company stated: “With this license, we’re proud to relocate Bitfinex Derivatives to El Salvador – a nation leading the charge in building a robust digital economy. This move strengthens our mission to deliver innovative trading solutions, especially to underserved regions in Latin America.”
El Salvador Has a Reputation for Being Crypto-Friendly
Keeping with its established tradition, Bitfinex Derivatives once again chose El Salvador as the breaking ground for its latest development. In April 2021, the firm became the first cryptocurrency exchange to secure DASP registration to operate in the Central American country. Later the same year, Bitfinex Derivatives would achieve another milestone when it secured a Digital Asset License from Nayib Bukele’s pro-crypto government. The dual recognition by the Latin American nation indicates the significant role the platform has continually played in the country’s crypto advancements.
El Salvador has continued with its pro-crypto march, passing the Digital Asset Issuance Law in 2023, which paved the way for companies to innovate openly within the country’s borders. The law provides a legal framework that promotes the issuance and trade of crypto assets such as equities, bonds, and other financial instruments, thereby solidifying the country’s desire to become a haven for crypto enthusiasts and projects.
El Salvador President Nayib Bukele is a renowned Bitcoin supporter who continues to play a critical role by openly promoting the sector. The government already owns over 6,000 Bitcoins, further highlighting its reputation as a global leader in cryptocurrency matters.
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Bitfinex Derivatives Continues to Broaden its Offerings
Bitfinex Derivatives entered a strategic partnership with Thales in July 2024 to broaden its list of offerings before the final integration went live in November of the same year. The collaboration enabled the firm to introduce the products like options and futures trading that it will now offer through Bitfinex Derivatives El Salvador. Through such partnerships, the firm has enhanced its appeal to traders worldwide. The platform also launched perpetual futures linked to BTC and ETH volatility, enabling users to bet on anticipated price swings in the flagship cryptocurrencies. Bitfinex Derivatives offers these products through a partnership with Volmex.
Conclusion
Despite facing serious challenges with its Chivo crypto wallet and restrictions from the International Monetary Fund (IMF) because of its Bitcoin stance, El Salvador has remained focused on its crypto journey. It continues to expand crypto education besides accumulating more Bitcoins. With the new licenses it has offered Bitfinex Derivatives to offer users advanced trading solutions, the country will likely cement its position as a leading crypto market in Latin America and contribute further to its reputation as a significant player in the global cryptocurrency economy.
Frequently Asked Questions (FAQs)
What are crypto derivatives?
Crypto derivatives are contracts in which a buyer and seller agree to transact an underlying asset at a pre-determined future date. Traders can benefit from the asset’s price movements without owning it.
Why trade derivatives?
Trading derivatives have several advantages, including benefiting from price movements when prices decline. Moreover, you can use derivatives to hedge price risk. They are also associated with affordable transaction fees.
What are some types of derivative products?
The most common types of crypto derivative products are futures and perpetual swaps. Futures contracts involve buying or selling a digital asset on a fixed date at a specific price. Perpetual swaps represent a trading tool similar to futures contracts, but they renew themselves automatically before they expire.
Disclaimer
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