Bitget Rides El Salvador’s Bitcoin Wave, Capitalizes on $362M Profit

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As a seasoned researcher with a decade-long career in the crypto sphere, I find myself constantly amazed by the rapid evolution of this dynamic industry. The recent news of Bitget becoming the first digital asset trading platform to be granted a license as a Bitcoin Service Provider (BSP) by El Salvador’s Central Bank is yet another testament to the relentless pace of crypto innovation.

Bitget, a major player in the cryptocurrency exchange market, has achieved a significant step by becoming the first digital asset trading platform to receive a license from El Salvador’s Central Bank to function as a Bitcoin Service Provider. This announcement came after President Nayib Bukele disclosed that El Salvador’s Bitcoin holdings had accrued an impressive unrealized profit of approximately $362 million.

The significant event of the exchange obtaining a license as a major cryptocurrency service provider occurs concurrently with increasing profits from Bitcoin held by El Salvador.

Bitget Licensing Coincides with El Salvador’s Growing Bitcoin Profits

On December 16th, Bitget was granted a Bitcoin Service Provider (BSP) license by El Salvador’s central bank, allowing them to offer various Bitcoin-based services within the country. This includes the ability to exchange fiat currencies, use it for multiple payment methods, and provide secure storage solutions.

On the very same day, President Nayib Bukele disclosed that El Salvador’s Bitcoin investments had accumulated an unexpected gain of approximately $362 million. As Bukele stated, the country initially invested about $270 million. Presently, the value of its 6,188 BTC holdings exceeds $632 million. Coincidentally, this revelation occurred when Bitcoin hit a record high, surpassing $107,000.

— Nayib Bukele (@nayibbukele) December 16, 2024

Although profits suggest that El Salvador’s Bitcoin approach holds promise, international organizations express doubts. It appears the nation is discussing a $1.3 billion loan with the IMF, and the IMF might propose modifications to El Salvador’s Bitcoin legislation. These potential alterations could lead to substantial changes in regulatory frameworks.

Under the terms of the BSP license, Bitget is authorized to provide distinctive Bitcoin-related services within the framework of local laws. Among these offerings are:

First Exchange to Obtain the License of BTC Service Provider in El Salvador

By obtaining the BSP license, El Salvador solidifies its position as a trailblazer in worldwide Bitcoin adoption, following its 2021 decision to recognize Bitcoin as legal tender. This license empowers users to safely buy, sell, save, and transfer Bitcoin directly on the Bitget platform.

Beyond just Bitcoin, Bitget is broadening its service offerings. They’ve submitted an application for a Digital Asset Service Provider (DASP) license in El Salvador’s National Commission of Digital Assets. This will enable them to provide a wider variety of digital asset services.

Fostering Crypto Innovation in Latin America

Bitget identifies El Salvador as a crucial market for expanding cryptocurrency growth within Latin America. Min Lin, the company’s Chief Business Officer, underscored the nation’s innovative capacity and its prominent position in shaping the future of the crypto industry.

In simple terms, Lin said that Latin America offers great potential for advancements in crypto technology, and this country stands out as a leader due to its bold adoption of Bitcoin as legal tender. Obtaining the BSP license is a significant step forward in regulation for our company. We’re committed to fostering the region’s development by offering secure, user-friendly, and innovative Bitcoin services.

In order to bolster its expansion within this Latin American nation, the platform plans to establish a local workforce on-site. This move is expected to enhance service provision and fortify connections with the country’s users, deepening relationships in the process.

Bitget’s Business Service Provider (BSP) license is consistent with their broader strategic growth plan in Latin America, a territory experiencing increasing crypto adoption. Numerous countries within this region are embracing cryptocurrencies for financial access, remittances, and economic stability amidst volatile national fiat currencies.

Outside of Latin America, the platform has broadened its reach into Europe, obtaining Virtual Asset Service Provider licenses in Poland and Lithuania. It’s returned to the UK market through a strategic alliance with Archax, functioning under the Financial Conduct Authority’s Financial Promotions Regime.

Currently, as I type this, Bitcoin’s price had already gone beyond its previous record of $107K and was fluctuating near $105,946, marking an increase of approximately 2.79% over its original value.

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2024-12-17 00:44