Bitfinex Moves To El Salvador After Securing DASP License

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Bitfinex derivatives exchange moved its operations to El Salvador following the acquisition of a Digital Asset Service Provider (DASP) license in 2023.

The platform’s services will now be managed by Bitfinex Derivatives El Salvador S.A. de C.V., requiring users to accept updated terms of service to continue accessing its offerings.

In an announcement on X, Bitfinex said, “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.”

The relocation reflects a strategic shift from the Seychelles and aligns with El Salvador’s progressive digital asset regulations. Bitfinex CTO Paolo Ardoino highlighted the license’s potential to support capital raising and secondary trading for entities ranging from small businesses to governments. He noted that the license provides access to a global market of crypto investors, estimated at over $1 trillion during market peaks.

El Salvador made history in September 2021 by becoming the first country to adopt Bitcoin as legal tender. However, the nation’s growing crypto sector faced international scrutiny.

In December 2024, El Salvador reached an agreement with the International Monetary Fund (IMF) that could limit some domestic Bitcoin-related activities in exchange for a $1.4 billion loan through the IMF’s Extended Fund Facility. Combined with additional support from the World Bank and regional development banks, the total financial package exceeds $3.5 billion.

The IMF has been vocal against El Salvador’s Bitcoin Law since its inception in September 2021. It raised concerns over customer confusion when choosing between Bitcoin and fiat currencies and warned that such dual-pricing systems could lead to inefficiencies.

In February 2023, the IMF reiterated these concerns, stating that Bitcoin’s benefits had “not materialized” and advising El Salvador to address potential risks. At that time, Bitcoin was trading at $21,600, a fraction of its current price. The country currently holds 6,189 BTC, valued at over $602 million.

The news comes barely a month after Bitget received authorization to offer Bitcoin-related services in El Salvador.

The Central Reserve Bank of El Salvador granted Bitget a Bitcoin Service Provider (BSP) license, enabling the exchange to provide fiat-to-Bitcoin exchanges, payment services, and custody solutions in the country.

Bitget is also pursuing additional approval from El Salvador’s National Commission of Digital Assets for a digital asset service provider license. If granted, it will allow the exchange to expand its trading services beyond Bitcoin to other digital assets.

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Bitfinex Moves To El Salvador After Securing DASP License

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