iFinex Signs Agreement with El Salvador Government to Develop Cryptocurrency Regulation
iFinex, the parent company for Tether and Bitfinex, has signed an agreement with the government of El Salvador to create a legal framework for cryptocurrencies in the country. This cooperation marks a new direction in the development of cryptocurrency regulation in Central America.
History of Collaboration
Tether, known for its stablecoins pegged to the US dollar, and Bitfinex, one of the leading centralized cryptocurrency exchanges, have a long history of working with El Salvador. In 2022, Bitfinex donated $1.3 million in cryptocurrency to support small businesses in socially disadvantaged areas of the country.
Key Milestones
In April of last year, El Salvador’s National Commission for Digital Assets (NCDA) granted Bitfinex a license to provide crypto services, making it the first licensed cryptocurrency exchange in the country. In June of the same year, Tether invested in a $1 billion mining farm in Metapan that will use only renewable energy sources.
Programs and Initiatives
Additionally, in December 2023, a program was launched to grant citizenship for crypto investments in El Salvador’s economy totaling at least $1 million in BTC or USDT with the support of Tether. Tether’s CEO and Bitfinex’s CTO noted that this partnership will bring new opportunities for capital attraction and stock tokenization.
Future Prospects
El Salvador’s President hailed the collaboration with iFinex as a significant step towards turning the country into a global financial center. This partnership with El Salvador is not Tether’s first foray into crypto regulation, as the company has also worked with Uzbekistan’s National Agency for Project Prospects to develop blockchain infrastructure and a legal framework for the cryptocurrency sector.
