The El Salvador Legislature passed the law on the issuance of digital assets, paving the way for Bitcoin bonds.
The approved law establishes a legal order in the country that provides legal certainty to transfer transactions of all kinds of digital assets used in public offerings.
El Salvador Approves New Law
With the new law, a new government agency will be created in the country to manage digital assets.
Bitcoin currently remains the legal currency in the country.
Opposition in the country claimed that the regulations would bring about money laundering, tax evasion and more borrowing.
The law will require digital asset service providers in El Salvador to complete a registration process and follow various rules under the proposed law. These organizations will have to provide a list of the digital assets they plan to offer, including their “benefits, restrictions, and limits.” Additionally, in addition to sharing the names and titles of company employees, they will also need to demonstrate their cybersecurity measures and customer service capabilities.
Digital asset issuers will also have to share information about the jurisdictions and countries in which they operate.