Bitget Rides El Salvador’s Bitcoin Wave, Capitalizes on $362M Profit
Leading crypto exchange Bitget has reached a critical milestone for itself as it is the very first digital asset trading platform that has been granted a license to be a Bitcoin Service Provider via El Salvador’s Central Bank. The exchange announced this following President Nayib Bukele revealing El Salvador’s BTC holdings made an unrealized profit of $362 million.
The milestone of the exchange receiving a license as a service provider of the largest cryptocurrency comes amid rising returns on the amount of BTC held by El Salvador.
Bitget Licensing Coincides with El Salvador’s Growing Bitcoin Profits
On December 16, Bitget received a license of a Bitcoin Service Provider (BSP) from El Salvador’s central reserve bank, thereby authorizing it to provide different services based on BTC within the country. It includes the right to exchange fiat currencies, using it for various forms of payment and also offering secure custody.
The same day, President Nayib Bukele revealed that the country‘s BTC holdings notched an unrealized profit of around $362 million. According to Bukele, the country had invested around $270 million. The valuation for its 6,188 BTC holdings currently stands over $632 million. This happened at the same time the currency reached its new all-time high surpassing $107K.
pic.twitter.com/w9FrMmCkwi
— Nayib Bukele (@nayibbukele) December 16, 2024
While the financial gains highlight the potential of El Salvador’s Bitcoin strategy, skepticism from global institutions remains. Reports indicate the country is negotiating a $1.3 billion loan with the IMF. IMF could recommend changes to the country’s Bitcoin law, leading to significant regulatory shifts.
The BSP license granted to Bitget enables it to offer unique BTC-related services under local regulations. These services include Bitcoin-to-fiat exchanges, facilitating crypto payments, and secure custody solutions for traders.
First Exchange to Obtain the License of BTC Service Provider in El Salvador
This license solidifies El Salvador’s status as a pioneer in global BTC adoption, following its 2021 move to make Bitcoin legal tender. The BSP license will enable users to securely purchase, sell, store, and transfer Bitcoin directly on the Bitget platform.
Additionally, Bitget is expanding its services beyond BTC. The company has applied for a DASP license with El Salvador’s National Commission of Digital Assets, allowing it to offer a broader range of digital asset services.
Fostering Crypto Innovation in Latin America
Bitget sees El Salvador as a key market for crypto growth in Latin America. Min Lin, the company’s CBO, highlighted the country’s potential for innovation and leading role in driving the crypto space forward.
“Latin America holds immense promise as a hub for crypto innovation, and this state stands out as a pioneer with its bold embrace of Bitcoin as legal tender,” Lin stated. “Securing the BSP license is a regulatory milestone for the company. We’re here to fuel the region’s growth by providing secure, accessible, and innovative BTC services.”
To further support its growth in this LATAM country, the exchange intends to build a local team on the ground. It believes the presence will increase service delivery and strengthen relationships with its users in the country.
The license granted to Bitget’s BSP is aligned with its broader expansion strategy in Latin America, a region of growing crypto adoption. Many countries in the region are adopting cryptocurrencies for financial inclusion, remittances, and stability in economies plagued by volatile fiat currencies.
Beyond LATAM, the exchange has expanded across Europe with Virtual Asset Service Provider licenses in Poland and Lithuania. The exchange re-entered the UK market by forging a strategic partnership with Archax under the FCA’s Financial Promotions Regime.
At the time of writing, after surpassing its all-time high of $107K, Bitcoin price was hovering around $105,946, up by 2.79%.
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