Tether and Bitfinex’s parent company will participate in the creation of crypto regulation in El Salvador

What’s new? iFinex has announced an agreement with the government of El Salvador that will allow the company to participate in the creation of a legal framework for cryptocurrencies. iFinex is the parent company of Tether and Bitfinex: the former issues the largest USD-pegged stablecoin with a capitalization of $110,8 billion, while the latter is listed on the leading centralized crypto exchanges (CEXs).

Press release

What else is known? The company has a long-standing partnership with the government of El Salvador. Back in 2022, Bitfinex donated $1,3 million in cryptocurrency to a program to support small businesses in the Ilopango, Soyapango, and Apopa districts, which are considered the most socially disadvantaged in the country.

Last April, El Salvador’s National Digital Asset Commission (NCDA) granted Bitfinex a license to provide crypto services, making it the first licensed crypto exchange in the country.

In June of the same year, Tether invested in the construction of a $1 billion, 241 MW mining farm in the municipality of Metapan, which will use only renewable energy.

In December, with Tether's support, El Salvador authorities launched a citizenship program for crypto investments in the local economy worth at least $1 million in BTC or USDT. Each year, 1000 visas will be allocated for investors and their family members.

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The new partnership will allow the parties to create comprehensive crypto regulation, paving the way for the issuance and trading of digital financial instruments. iFinex will assist officials in drafting laws, regulations, and guidelines related to cryptocurrencies.

iFinex will also advise the Salvadoran government on the issuance of the Volcano Bond, a bitcoin-backed digital bond whose issuance has been repeatedly postponed since it was announced in November 2021. The project has already raised $1 billion from investors, the amount will be used to build mining farms and buy BTC. The only exchange service provider in this project is Bitfinex.

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Tether and Bitfinex CEO and CTO Paolo Ardoino said that the cooperation will open new opportunities for raising capital and tokenization of shares.

El Salvador President Nayib Bukele said the partnership will be an important step towards making the country a global financial center.

For Tether, this is not the first time it has collaborated with the government to create crypto regulation. In March of this year, the company began cooperating with the National Agency for Perspective Projects (NAPP), responsible for regulating and developing the cryptocurrency sector in Uzbekistan. As part of the cooperation, Tether will assist in the development of blockchain infrastructure, as well as the development of a national cryptocurrency and legislative framework for the industry.