The El Salvador Legislative Assembly has unanimously approved a law regulating the issuance of digital assets, opening up the possibility of issuing government-backed Bitcoin (CRYPTO: BTC) bonds.
What Happened: This legal framework, championed by President Nayib Bukele, will enable El Salvador to become the first nation in the world to offer such bonds.
The new law in El Salvador establishes the legal framework for the circulation, transfer, and storage of digital assets used in public offerings, including Bitcoin bonds, providing greater legal certainty to users. It also establishes a new agency to administer El Salvador's digital assets.
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Digital asset service providers in El Salvador would have to adhere to stringent registration processes, as well as comply with several rules and regulations, under the proposed law. These entities must provide a comprehensive list of digital assets they intend to offer, outlining each asset's benefits, restrictions and limits. Furthermore, they must demonstrate a capability to implement adequate cybersecurity measures and maintain high-level customer service.
Bitcoin is already recognized as a legal currency in the country, but some opposition legislators have voiced concerns about the regulations for its use, alleging that it could be used for money laundering, tax evasion and greater indebtedness, as reported by ElSalvador.com.
Price Action: BTC was trading at $18,218, up 4.36%, in the last 24 hours, according to Benzinga Pro.