Why It’s A Big Deal For A USDT Tether Issuer To Establish Headquarters In Bitcoin-Friendly El Salvador

Tether, the cryptocurrency giant behind the $137 billion stablecoin USDTis establishing the group’s headquarters in the Bitcoin-friendly country of El Salvador, the company He said on monday.

The company said that this development came after obtaining all necessary licenses as a source of stable currency in the country.

A company spokesperson said the move will see Tether move the combined subsidiaries to El Salvador and establish its first headquarters. Previously, most of the group’s entities were incorporated and licensed in the British Virgin Islands (BVI), a source familiar with the company’s operations told CoinDesk. The source added that this move does not affect the company’s current presence in the Swiss cryptocurrency hub Lugano.

Two Tether-related companies — Tether NA El Salvador, SA de CV and Tether International El Salvador, SA de CV — received regulatory approval last August for most cryptocurrency-related activities in the country, according to Public registration From the National Commission for Digital Assets of El Salvador (CNAD), the government regulatory body for cryptocurrencies.

“This decision is a natural development for Tether as it allows us to build a new home, strengthen collaboration and strengthen our focus on emerging markets,” Paolo Ardoino, CEO of Tether, said in a statement. “El Salvador represents a beacon of innovation in the digital asset space,” he added.

This transfer is a huge development for El Salvador’s aspirations as a cryptocurrency hub. Tether is one of the largest digital asset companies and… I mentioned $7.7 billion net cryptocurrency earnings in the first three quarters of 2024. That’s nearly 20% of the country’s annual GDP, per International Monetary Fund data.

The move could also bring big benefits for Tether as well, as it enjoys the country’s tax benefits aimed at attracting tech and cryptocurrency companies. “The potential relocation takes advantage of El Salvador’s new ICT Innovation Law, which provides a 15-year tax break for technology companies on income, property and capital gains.” male Matthew Siegel, head of digital asset research at investment firm VanEck.

Read more: Interview with El Salvador’s top cryptocurrency regulator: “Developing countries can lead the financial revolution”

Tether’s USDT is the largest stablecoin and a popular means of payments and remittances for users in emerging countries.

El Salvador, a small Central American country with a population of more than 6 million, has become an emerging cryptocurrency hub under President Nayib Bukele. The country introduced Bitcoin (BTC) as legal tender in 2021 and created comprehensive digital asset regulations that are attracting a range of cryptocurrency companies to settle. It is also a large holder of Bitcoin, currently holding over 6,000 Bitcoin worth around $550 million USD per month. Arkham data.

In other El Salvador news, Rumble (RUM), the Tether video sharing platform, has emerged acquired A stake worth $775 million Cloud services deal concluded With the Salvadoran government last week.