Tether announces plans to relocate to El Salvador after securing DASP license

Tether recently announced plans to relocate its headquarters from the British Virgin Islands to El Salvador with the aim of leveraging the country’s crypto-friendly environment. 

Following the acquisition of a Digital Asset Service Provider (DASP) license, the CEO of Tether, Paolo Ardoino, announced that the company’s headquarters will move from the British Virgin Islands where it was previously incorporated to El Salvador. 

El Salvador’s journey with crypto began in 2021 when it became the first country to adopt Bitcoin as legal tender. President Nayib Bukele chose the digital asset to bolster his country’s economy and enhance financial inclusion, disregarding concerns from traditional financial institutions and even the general populace. 

Tether’s decision to relocate its headquarters to El Salvador is largely due to the supportive and regulatory environment the country provides. 

Tether calls the movers 

El Salvador has embraced blockchain technology and is fast becoming an ideal destination for tech companies looking to build the future of financial systems in a favorable regulatory environment. The increasing regulatory scrutiny of stablecoins in regions like the European Union and the United States has improved the nation’s status as a haven for digital asset firms.

“This decision is a natural progression for Tether as it allows us to build a new home, foster collaboration, and strengthen our focus on emerging markets,” Ardoino said. 

While not all of Tether’s employees will be relocating, as most of them work remotely, the CEO and his fellow managers and co-founders will be packing up their residences and heading southwest. 

The benefits of the move

By establishing its first physical headquarters in El Salvador, Tether now has a role in contributing to the country’s economic development. It will also be a crucial ally for President Bukele in improving the acceptance of cryptocurrencies among the general populace. 

According to a study by Francisco Gavidia University in San Salvador, 7.5% of the El Salvador population actively uses Bitcoin. At one point, the country sat on over $300M from its Bitcoin investments when the leading digital asset crossed the $100,000 milestone. 

The company’s relocation may be the beginning of a wave of cryptocurrency firms looking to operate within more accommodating jurisdictions. Other countries may also be looking at the example of El Salvador as part of their strategy to attract digital asset companies. 

Reuters reports that Tether intends to hire 100 Salvadorans over the next several years, contributing to the local employment scene. 

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