El Salvador awaits a new law monitoring and regulating the activities of digital service providers in the country. The Legislative Assembly claims the "Digital Issuance Law" would bind digital service providers in a legal framework. Additionally, it would also set up a national commission to monitor these service providers, their operations, and their certifications.
The digital issuance law, which now resides within the economic committee of the Legislative Assembly, seeks to promote the digital assets market of the country. However, it would also look into the safety and interests of the acquirers. Evidently, the law would set up a safer digital asset economy, ruling out the chances of thefts and money laundering.
El Salvador adopted Bitcoin as a legal tender in September 2021. However, that narrowed down the market scope to Bitcoin alone. The country seeks to diversify the digital assets market through the new law instead of focusing on a single cryptocurrency. Thus, the Digital Issuance Law would offer digital assets to the public.
Digital service providers in El Salvador would require to register themselves under the new law and list their offerings. However, that is not all; the proposed law also states the service providers to declare the restrictions and limitations on their offerings. As a result, the new law would offer greater transparency to the public. According to the tenets of the new law, digital service providers must also disclose their country of operation for greater transparency.
Considering the nature of scams carried out in the digital assets market, the new law would also rule out the scope of such activities. By empowering a national commission to look after the activities of the digital providers in El Salvador, the Digital Issuance Law would offer a more stable and protected environment to acquirers.
While the new Digital Issuance Law is on the cards, El Salvador is yet to witness more. Nayib Bukele, the President of El Salvador, announced that the government would develop 52 new legal reforms on digital assets and cryptocurrencies to promote better safety, protection, and monitoring.
In fact, the legal framework for digital assets providers was supposed to launch before the country's "Bitcoin Bond." However, it failed to keep up with the promised dates.
With Buckle's announcement in February, it is evident the country will witness several reforms soon, and experts believe it will make the country the financial center of South and Central America.