El Salvador: Congress approves law to regulate emissions in digital assets

The Congress of El Salvador, which in 2021 became the first country in the world to convert to bitcoin as legal tenderapproved on Wednesday a law that seeks to regulate emissions in other digital assets both by the State and by private companies, among other entities.

The approved bill has the objective of attracting national and foreign investment, as well as creating new financing opportunities for citizens, companies and the public sector.

“The purpose of this Law is to establish the legal framework that grants legal certainty to transfer operations to any title of digital assets that are used in the issuance of public offerings carried out in the territory of El Salvador,” says the document endorsed by the legislators with a pro-government majority.

Public offerings may be made by issuers using already existing digital assets, and building, through them, new digital assets, such as tokens that offer a return on a specific digital asset platform or creating totally original digital assets by the issuer, it indicates. the law.

In addition, it establishes the creation of the National Commission for Digital Assets and the Bitcoin Funds Administration Agency, which will be in charge of managing, safeguarding, and investing funds from public offerings of digital assets carried out by the State and its autonomous institutions.

The provisions of the law are not applicable to digital currencies issued by the central banks of any country or territory, whether fiat or digital, nor are digital assets that by law are legal tender such as bitcoin, in addition to the video game ecosystem and Non-Fungible Tokens (NFTs).

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