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Only 11% of El Salvador’s registered Bitcoin firms operational

Only 20 of the 181 Bitcoin service providers registered with El Salvador’s central bank are operational, with the rest failing to meet the country’s requirements under its Bitcoin Law. 

Local media outlet El Mundo cited data from the Central Reserve Bank of El Salvador, showing that 11% of the service providers are operational. According to the central bank’s database, the rest of the providers are classified as non-operational. 

The data showed that at least 22 non-operational providers have failed to meet most of the country’s Bitcoin Law requirements, which mandate that providers implement stringent supervision of their financial systems. 

Most of El Salvador’s Bitcoin service providers are non-operational

El Salvador’s Bitcoin Law requires providers to maintain an Anti-Money Laundering (AML) program, keep records that accurately reflect the company’s assets, liabilities and equity and have a tailored cybersecurity program depending on the nature of its services. 

The data showed that 89% of the registered providers have failed to meet some of these obligations to be classified as operational. 

Still, a few firms have satisfied the legal criteria, including the state-backed Chivo Wallet and companies including Crypto Trading & Investment and Fintech Américas.

Related: Cathie Wood to kick off El Salvador’s AI public education program

El Salvador’s Bitcoin experiment

In 2021, El Salvador became the first country to accept Bitcoin as legal tender along with the US dollar. This move made Bitcoin integral to El Salvador President Nayib Bukele’s economic strategy. 

However, the Central American country recently signed a deal with the International Monetary Fund (IMF) on a $1.4 billion loan in exchange for rolling back some of its Bitcoin-related efforts. Under the agreement, taxes will be paid in US dollars and public institutions will limit their use of Bitcoin.

On March 3, the IMF asked the country to stop its public sector Bitcoin buys. Still, Bukele said the government will continue to purchase Bitcoin, seemingly contradicting its IMF deal.

The IMF deal prompted speculation about whether the country would rescind Bitcoin’s status as legal tender. John Dennehy, an El Salvador-based Bitcoin activist and educator, said in an X Space with Cointelegraph that a rollback law changing Bitcoin’s legal status is set to take effect on April 30.

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EU sanctions crypto entities for election interference, disinformation

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EU sanctions crypto entities for election interference, disinformation

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The EU has sanctioned multiple entities for using cryptocurrencies to evade restrictions, channel funds, and propagate pro‑Russian disinformation and election interference.

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Starmer says former Tory ministers have ‘serious questions to answer’ over Afghan data breach

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Starmer says former Tory ministers have 'serious questions to answer' over Afghan data breach

Sir Keir Starmer has said former Tory ministers have “serious questions to answer” about how the names of Afghans who worked with UK forces were exposed.

Nearly 7,000 Afghan nationals are being relocated to the UK after their names were accidentally sent in an email in February 2022, when Boris Johnson was prime minister, but the leak was only discovered by the British military in August 2023, when Rishi Sunak was PM.

A super-injunction, preventing the reporting of the mistake, was imposed that year in an attempt to prevent the Taliban from finding out about the leak.

The Conservative government at the time then started transporting thousands of Afghans to the UK in secret as they were in danger.

On Tuesday, the injunction was lifted.

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Victim of Afghan data breach speaks to Sky

Kicking off Prime Minister’s Questions, Sir Keir said: “Ministers who served under the party opposite have serious questions to answer about how this was ever allowed to happen.

“The chair of the defence committee has indicated that he intends to hold further inquiries.

“I welcome that and hope that those who are in office at the time will welcome that scrutiny.”

The data breach saw a defence official accidentally release details of almost 19,000 people seeking to flee Afghanistan after the return of the Taliban.

Conservative leader Kemi Badenoch avoided mentioning the data breach, but Lib Dem leader Sir Ed Davey said it was “shocking” how it had been kept secret for three years.

Sir Ed said the prime minister will have the Lib Dems’ support if he decides to pursue a public inquiry.

Mr Healey’s Tory predecessor, Sir Ben Wallace, said he makes “no apology” for applying for the initial four-month injunction and insisted it was “not a cover-up”.

The scheme, which had been kept under wraps until yesterday, has so far cost hundreds of millions of pounds.

However, the total cost to the taxpayer of existing schemes to assist Afghans who are deemed eligible for British support, as well as the additional cost from the breach, will come to at least £6bn.

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Afghans being relocated after data breach

Earlier, Defence Secretary John Healey told Sky News he is “deeply uncomfortable” with the government using a super-injunction to keep the massive data breach hidden.

He said: “I’m really deeply uncomfortable with the idea that a government applies for a super-injunction.

“If there are any [other] super-injunctions in place, I just have to tell you – I don’t know about them. I haven’t been read into them.

“The important thing here now is that we’ve closed the scheme.”

Mr Healey was informed of the breach while in opposition, and earlier this year he commissioned a review that led to the injunction being lifted.

He said “accountability starts now” and added Labour had to deal with the risks, court papers, intelligence assessments and different schemes when they came to power last summer before they could lift the injunction.

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CLARITY Act isn’t perfect, but it’s the bill US Congress must pass this summer

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CLARITY Act isn’t perfect, but it’s the bill US Congress must pass this summer

CLARITY Act isn’t perfect, but it’s the bill US Congress must pass this summer

The Digital Asset Market Clarity Act isn’t perfect, but Congress should pass it this summer to establish the US as the global leader in digital asset regulation.

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