El Salvador grants Bitfinex first digital asset license, new law in El Salvador reduces tax burden for startups
The first country in the world to adopt Bitcoin as legal tender, El Salvador, has recently granted Bitfinex the first license as a digital asset service provider in the country. The long-awaited volcanic Bitcoin bonds may finally have the opportunity to be issued under the digital asset law. In addition, El Salvador's President Nayib Bukele submitted a bill to Congress in early April to plan the elimination of all taxes on new software and hardware startups, aiming to attract more startup companies to invest.
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El Salvador Grants Bitfinex Digital Assets Service License
El Salvador has issued the country's first digital assets service provider license to Bitfinex Securities El Salvador SA de CV. Bitfinex will be able to tokenize innovative real-world assets such as stocks and bonds under El Salvador's digital asset issuance law, facilitating issuance and secondary market trading.
In January, El Salvador passed legislation on digital assets, establishing a legal framework for digital assets other than Bitcoin. This law allows El Salvador to publicly issue digital assets and facilitate transfers, paving the way for the upcoming volcano bonds. After more than a year of anticipation, the volcano Bitcoin bonds will finally have the opportunity to be issued under the new legislation, with Bitfinex being a partner in El Salvador's bond program.
El Salvador Cancels Startup Taxes to Attract More Investment
President of El Salvador, Nayib Bukele, submitted a bill to the Congress in early April to cancel all taxes on startups in technology sectors such as software coding, applications, artificial intelligence development, and manufacturing of computing and communication hardware, including income, property, capital gains, and import duties, aiming to attract more startup investments.
Done ✅ https://t.co/5CD6l3xJlC pic.twitter.com/vzKJ5rI3qv
— Nayib Bukele (@nayibbukele) March 31, 2023
El Salvador's Bitcoin Cost Averaging at $42,418, No Additional Purchases for Months
According to data, El Salvador has purchased 2,674 bitcoins with an average cost of $42,418 each, totaling $113 million spent on Bitcoin purchases to date. The last purchase was made in November 2022.
