El Salvador authorities are studying a bill to regulate crypto assets in the country

Legislators in El Salvador are considering a bill aimed at regulating digital asset service providers and cryptocurrency issuers in the country.

The bill implies the creation of a special commission that will register cryptocurrency companies and oversee operations with crypto assets. The main goal of this draft law is to develop a legal framework that will promote the development of not only bitcoin, but the entire crypto-asset market, while protecting the interests of users.

Digital Asset Service Providers (VASPs) in El Salvador will be required to complete the registration process and provide a list of the crypto assets they plan to work with, as well as the associated benefits and limitations. VASPs must carefully consider security measures when serving customers. In addition, cryptocurrency companies will have to disclose the names and positions of their employees, and indicate the jurisdictions in which they operate.

In addition, the bill mentions the creation of an agency that will manage, store and invest funds received from public offerings of digital assets conducted by local government agencies, as well as the income from these public offerings. Other additional laws dedicated to digital assets may be in development.

Earlier, President Nayib Bukele of El Salvador reported that the government was working on 52 reforms related to securities and tax incentives. Tether and Bitfinex CTO Paolo Ardoino commented on this initiative on Twitter, writingthat the Digital Securities Act will allow El Salvador to become the financial center of Central and South America.

Last week, the President of El Salvador announced that the government will buy one bitcoin daily, despite the market drop and its high volatility.