In relation to the issuance of digital assets, the Legislative Assembly of El Salvador has finally played a key role by giving its own stamp of approval. This will very certainly widen the window for the acceptance of Bitcoin Bonds. Nayib Bukele, the president of El Salvador, had specifically wished for this decision to be made. Since the beginning of 2022, this issue has been discussed frequently.
This new law attaches conformity to the legal order, which provides legal assurance in all matters of carrying out transfer operations of just about any and every sort of digital-based asset, which in turn is utilized in the case of making public offerings in El Salvador. This will also pave the way for the establishment of a strong government agency to oversee the proper management of El Salvador’s digital assets.
In terms of sharing relevant information, Bitcoin is an absolute legal tender in the country of El Salvador. However, in the case of the opposition and their firm opinion, they make the claim that the regulations go a long way in encouraging matters of money laundering, along with tax evasion, coupled with opening the doors wide for further and increased indebtedness.
Now that the newly introduced law is in place, all of the providers in El Salvador will be required to duly follow a set process of registration. Along with that, there will also be the inherent need for strictly abiding by all of the mentioned rules applicable to the law. In this scenario, they will now be asked for a list of digital assets that they will be providing.
This will also be related to issues regarding benefits and all restrictions and limitations. It will also be required of them to showcase the preventive measures they will take in the case of cybersecurity and their capabilities in customer service. All of the names and corresponding titles of all employees of the concerned company must be disclosed.
People who issue digital assets will also need to abide by specific set rules, like in the case of volunteering relevant information related to the jurisdictions of the countries they run their operations in.
