The authorities of El Salvador are thinking about improving the regulation of cryptocurrencies

Representatives of the administration of El Salvador reported that they are currently considering a bill that implies the introduction of the regulation of cryptocurrency activities in the state.

This means that in the future, cryptocurrency service providers may have additional conditions that they will need to comply with. In addition, digital assets can acquire securities that will additionally regulate cryptocurrency assets.

As the main goal, the authorities of El Salvador named the development of an appropriate legal framework that will not only help improve the position of bitcoin in the market, but also help the development of the entire exchange as a whole. Recall that El Salvador became the first country in the world to adopt bitcoin at the state level.

In addition, President Nayib Bukele, in the light of recent events, said that El Salvador does not plan to abandon the digital reformation and will support bitcoin and buy one piece of this asset every day. If the state adheres to such a plan now, then in two or three years it can provide all possible assistance in the development of the economy and the rise of the country.

In El Salvador, Digital Asset Service Providers (VASPs) are now required to go through a registration process and will provide a list of crypto assets they want to work with. In addition, they will indicate the advantages and limitations associated with digital assets. VASPs also need to develop a protocol for the security measures they will need to follow when serving their customers.

Together with such innovations, companies engaged in activities in the field of cryptocurrencies will no longer be able to conduct business anonymously. As a result of the new measures, all organizations are required to disclose the names of all employees and indicate their positions in order to comply with the new regulations. At the same time, organizations from the field of cryptocurrencies must indicate the jurisdictions in which their employees operate.

The new bill, which is being considered by the authorities of El Salvador, provides for the creation of a single department that will keep records of the storage and investment of funds that were received during public offerings of cryptocurrencies conducted by government organizations. Income received from the above public offerings will also be added to this register. Among other things, other measures can be taken to introduce the regulation of digital assets.

Nayib Bukele, the President of El Salvador, reported that at the moment the government is considering 52 possible reforms that are related to securities and tax incentives. Paolo Ardoino, who holds the position of CTO at Tether and Bitfinex, in turn said that these reforms can help El Salvador become the financial center of Central and South America.