El Salvador is doubling down on its cryptocurrency bets, even in the midst of a bear market. The first country to make bitcoin legal tender is currently working on a digital asset issuance law that will make it easier to transact any crypto asset.
According to a document published on the official website of the National Assembly of El Salvador , the law aims to "promote the effective development of the digital property market and protect the interests of users" and regulates the transfer of any digital property.
The novelty of the law is the separation of crypto assets from all financial assets and products and the creation of a regulatory framework adapted to this. The law leaves no doubt: for a digital asset to fall into this category, it must use a distributed ledger or similar technology. Blockchain is probably the most popular distributed ledger technology today.
The legal framework excludes transactions involving CBCCs (as they are currencies regulated by each country's financial regulations), assets not authorized for trading or exchange, assets subject to restricted transactions such as government securities and assets subject to foreign laws.
In a thread on Twitter , cryptocurrency attorney Ana Ojeda pointed out some interesting aspects of the Caracas law.
Create a digital supplier directory.
Validity of Crypto.
Inclusion of legal definitions of stablecoins and tokens.
Regulation of public offerings of digital assets.
Partial tax exemption.
Critics of the new law were few. Salvadoran hacktivist Mario Gómez, president of Naib Buquel, criticized the way the Bitcoin law was implemented, saying the new law was designed to help struggling foreign companies and increase the attractiveness of bitcoin. Salvador. The crypto industry. "The reason why these organizations focus on smaller countries is because when it comes to a large organization that sits directly with the president and implements policies that benefit them ," he said .
President Buckele introduced the popular Bitcoin law to Congress in June 2021. A few hours later, it was approved by the National Assembly with a majority of pro-government parties. Assuming the new law can be implemented just as quickly.