El Salvador approves the law on the issue of digital assets - regulation

The legislative assembly of El Salvador has approved the law on the issue of digital assets, a framework that will enable the country to issue crypto -related guilt. The approved law, which was passed in the congress thanks to President Nayib Bukele, serves as the basis for the emission of the long -awaited volcanic bonds.

El Salvador passed the law on digital bonds

el Salvador has taken another step towards integrating blockchain technology into the financial operations of the state. The legislative assembly finally passed the law on the issue of digital assets that set the rules for the state to open public offers in connection with cryptocurrencies.

The law, which was largely adopted due to the support of the Nayib Bukele party, has the goal of “creating a legal framework that granted legal certainty for transferring processes to any title to digital assets that are used in the issue of public offers outside in El Salvador.”

The document also creates the Bitcoin Fund Administration Agency, an autonomous institution that manages the funds that the state receives by issuing cryptocurrencies based on cryptocurrencies and will have a direct relationship with the Ministry of Finance of El Salvador.

implications and further developments

The approval of this law, which was introduced in November, serves as the basis for the emission of the long -term volcanic bonds, a series of guilt titles that are partly used to finance the country's construction bitcoin-city . The city, which would be tax-free and CO2-neutral, would be built from these bonds with $ 1 billion and operated with geothermal energy.

The volcanic bonds should be output by El Salvador last year, but the government repeated delayed based on the conditions of the cryptocurrency market and DES As an increase in the Ukraine Russia conflict, according to the statements of Alejandro Zelaya, the state's finance minister.

However, not all MPs supported this law, since some expressed their dissatisfaction with the way it was adopted. Johnny Wright, part of the opposition coalition, specified

el Salvador creates ideal conditions for money laundering, an ecosystem that facilitates money laundering and tax evasion.

In addition, MP Claudia Ortiz criticizes that this law of the Bukele government opens the door to issue bonds without any control. Nevertheless, there is still no date for the output of the volcanic bonds.

What do you think about the approval of the digital asset Issuance Law in El Salvador? Tell us in the comment area below.

Sergio Göschenko

sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game and entered the cryptosphere when the price increase took place in December 2017. He has a background as a computer engineer, lives in Venezuela and is affected by the cryptocurrency boom on a social level. It offers a different perspective on the crypto success and how it helps those who have no bank account and are under-supplied.

Bedy verification : Shutterstock, Pixabay, Wikicommons