El Salvador Crypto License
Last Update: 23.02.2026
If you are considering El Salvador as a jurisdiction for crypto activities, Gofaizen & Sherle can help you register a legal entity, meet capital requirements, develop a business plan and AML/KYC policy, apply for a crypto license in El Salvador (BSP/DASP), and comply with local laws.
El Salvador became the first country to legalize Bitcoin in 2021 under the Bitcoin Law, and the country has become the center of the crypto industry in Latin America. The main regulator is the National Commission on Digital Assets (CNAD), and the key regulation is the Digital Assets Issuance Law (2023).
The government’s rapid development of the crypto sector is supported by tax incentives and exemptions for companies with a crypto license in El Salvador. They are exempt from fees, taxes, and duties on digital assets, including capital gains and ordinary income.
There are two types of crypto licenses in El Salvador: the Bitcoin License, which is for bitcoin companies, and the DASP (Digital Asset Service Provider) License, which regulates digital asset service providers.
However, any other taxes and government fees can be paid with cryptocurrency. In addition, the process of obtaining a crypto license in El Salvador is not too difficult, and the government supports investors by providing loyal business regulations.
Types of crypto licenses in El Salvador
In El Salvador, there are two key types of licenses for cryptocurrency activities, formed on the basis of the LEAD law and the 2024–2025 reforms.
| License type | Who need | Regulator | Key services | Requirements | Fees |
|---|---|---|---|---|---|
| Bitcoin License (BSP – Bitcoin Service Provider) | License for companies operating with Bitcoin as a legal means of payment. | CNAD from 2024 with the participation of BCR (Central Reserve Bank) | BTC exchange, custodial wallets, payment services and processing, Bitcoin infrastructure. |
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| DASP (Digital Asset Service Provider) | License for transactions with digital assets, except Bitcoin. | CNAD | Digital asset exchange, custodial services, RWA tokenization, token placement, platforms (crypto wallets and exchanges). |
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Advantages of Obtaining a Crypto License in El Salvador
El Salvador is one of the fastest and most accessible jurisdictions for obtaining a crypto license in Latin America. The license can be obtained in 5-6 months with a minimum capital of $2,000. In addition, crypto license holders in El Salvador receive the following benefits:
Evolution of regulation and leadership
El Salvador supplemented the Bitcoin Law (2021) with a new comprehensive law – LEAD (Ley de Emisión de Activos Digitales, 2023), creating a regulatory framework for all types of digital assets. This expanded regulation, strengthened investor protection, and attracted international crypto companies.
Transparent legal system and CNAD oversight
Licensing is supervised by the CNAD (Comisión Nacional de Activos Digitales). The LEAD law establishes clear rules for VASPs and DASPs, as well as AML/KYC requirements in line with FATF recommendations. This provides legal predictability and increases trust from banks and investors.
Preferential taxes and fees
CNAD-licensed companies are exempt from 0% corporate tax on digital asset transactions. The one-time fee is $6,270, and the annual fee is $4,050 (CNAD data, 2025). This structure makes El Salvador one of the most accessible jurisdictions for crypto businesses in the region.
Development of the digital ecosystem
LEAD has created a legal framework for the development of exchanges, wallets, and payment platforms. El Salvador is becoming a platform for the development of solutions in the field of DeFi, NFT, and Web3, including bitcoin mining and the creation of digital wallets and infrastructure for international transfers.
Government initiatives and financial inclusion
The Salvadoran authorities, including the Banco Central de Reserva and the SSF (Superintendencia del Sistema Financiero), are developing digital infrastructure and access to financial services. Licensed companies can participate in national fintech programs and blockchain payment initiatives.
Regional and investment opportunities
A Salvadoran license provides access to markets in Central and South America. Companies can form partnerships with regional investors and exchanges, where demand for regulated VASP providers is growing.
International standards and trust
El Salvador is actively working to comply with international standards, including FATF and EGMONT Group recommendations aimed at combating money laundering and strengthening transparency. This increases investor confidence and strengthens the country’s reputation as a stable fintech jurisdiction.
All advantages are confirmed by official CNAD documents and the LEAD law (2023). As of 2025, El Salvador remains one of the most attractive jurisdictions for crypto businesses in Latin America.
Requirements for a crypto license in El Salvador
Companies planning to obtain a crypto license in El Salvador must comply with the requirements established by the Law on the Issuance of Digital Assets (LEAD) and the National Commission on Digital Assets (CNAD):
- Register a legal entity in El Salvador and be registered with the National Commission of Digital Assets of El Salvador;
- There must be at least two shareholders in the company;
- Provide identification documents together with the residency proof for all board members and shareholders;
- Provide a business plan that demonstrates the ability to offer digital services;
- Provide a detailed description of the company’s organizational structure, including names, positions, and specific functions of employees to ensure clarity and efficiency of internal work processes;
- Implement cybersecurity standards for the storage and handling of digital assets;
- Maintain financial records and disclose information about company operations, including ownership and shareholder information, as appropriate;
- Comply with all regulations and requirements related to user and investor protection, including risk disclosure and refund policies;
- Cooperate with regulatory authorities and provide all necessary reporting;
- Companies must have systems in place to prevent, detect and disclose risks of financial crime, including money laundering and terrorist financing, as part of AML/KYC compliance.
Process and timeline for obtaining a crypto license in El Salvador
The process of registering a crypto company and obtaining a crypto license in El Salvador involves several consecutive stages, starting with the preparation of preliminary documents and ending with the completion of all registrations with regulatory authorities and the opening of a corporate account.
Stage 1: Collection of preliminary documents.
To begin the incorporation and licensing process, the following documents are required:
- Preferred company name;
- Passport copies of all shareholders (at least 2) and directors (notarized + apostilled);
- Address of residence confirmation (utility bill) from all directors and shareholders;
- Power of attorney (notarized + apostilled);
- A business model of the company (brief description 1-2 pages).
Stage 2: Registration and licensing process.
- Choosing the right organizational structure. A limited liability company is the most common organizational form in El Salvador.
- Choosing and reserving a company name. The name must be booked with the Commercial Registry of El Salvador.
- Preparation of corporate documents. Once the name is approved, the notarized corporate documents are prepared, including passport copies of directors, proof of physical address, and other required materials.
- Submission of the company registration application. After collecting and notarizing all documents, the application is submitted to the Commercial Registry. Upon approval, the company receives an official registration certificate.
- Preparation and submission of license application documents. In parallel with company registration, the following procedures are carried out: Preparation of licensing documents, Submission of the license application to the National Commission for Digital Assets (NCDA), Compliance checks required under El Salvador’s regulatory framework.
Stage 3: Corporate account opening.
*Done simultaneously with Stage 2.
- Analysis and selection of suitable banks/EMIs based on risk appetite and AML policies;
- Collection of documents from the client (fund movements, source of wealth, purpose of opening an account, key partners, company website, utility bills, etc.);
- Full guidance through the account opening process.
Most banks require personal presence, but in some cases the process can be completed remotely or through a representative.
Stage 4: Additional Mandatory Registrations.
After the company is registered, it must be registered with:
- Hacienda (tax authority);
- Salvadoran Social Security Institute;
- Ministry of Labor.
Within 15 days of company registration, the company must obtain:
- RNC (Número de Registro del Contribuyente);
- NIT (Número de Identificación Tributaria).
Stage 5: Obtaining a Crypto License in El Salvador
- Registration of Bitcoin Service Providers (RPSBTC BCR). In accordance with the Bitcoin Law, companies or individuals providing BTC-related services must register with the BTC Service Provider Registry at the Central Reserve Bank.Once registered, the company is supervised by the FSS and PFR to ensure compliance with AML/CFT requirements.
- DASP license registration (RPSAD at CNAD). Under the Digital Asset Issuance Act, service providers, asset issuers, and certifying organizations must register with the National Commission of Digital Assets.If your company plans to provide digital asset services in El Salvador, registration with the RPSAD is mandatory.
Crypto Licensing packages in El Salvador
Full set up of crypto company with office and accounting services.
- All services from the Advanced Package
- Revision of your business plan by a lawyer
- Provision of exclusive local proprietor and alternate compliance officers with direct employment agreement for the period of DASP license obtainment (up to 4 months)
- Complete AML registration before the Financial Investigation Unit
- Corporate account opening in a local conventional bank
- Corporate account opening in a European EMI (segregated B2B/B2C accounts, multicurrency accounts)
- Accounting legalization system, initial balance of the company, and issuance of corporate books by a certified auditor.
Registration of BTC Service Provider and Digital Asset Service Provider under the Full regulatory requirements.
- All services from the Basic Package
- Personalized AML/KYC Policy (up to 20 h of lawyer’s work)
- Provision of exclusive local proprietor and alternate compliance officers with direct employment agreement for the period of DASP license obtainment (up to 4 months)
- Assistance with registering the DASP license within the National Commission For Digital Assets (“NCDA”)
- Preparation of the internal procedural documents:
– Enterprise-wide Risk Assessment
– Business Continuity Policy
– InfoSec Policy
– Winding Down Policy
– Compliance Management Policy
– Risk Management Policy
– Safeguarding of Assets
– Code of Ethics
- Governmental fee of 6720 USD
- Set of corporate documents with an apostille and translation to English language
Registration of BTC Service Provider under the minimum regulatory requirements.
- Full turnkey company formation assistance
- Address of registration for 1 year
- Set of corporate documents in Spanish language
- Standard AML/KYC Policy (up to 5h of lawyer’s work)
- Assistance with share capital contribution
- Assistance with registering the BTC license within the National Commission For Digital Assets (“NCDA”)
- Acting as local agent for notification before the regulator for its BTC-related activities for 1 year.
Overview of Crypto Regulation in El Salvador
| Project time frames | 3 to 6 months |
| State fee for application | 0$ |
| Required share capital | 2000$ |
| Corporate income tax | 0% (Crypto companies are tax exempt, while for other common types of companies tax rate of 30% is applicable |
| Annual supervision fee | 0$ |
| Local staff member | Not required, recomended |
| Physical office | Not required, recomended |
| Accounting audit | Not required |
| Sustainability | Sustainable |
| Bank account options | Some European EMIs, Midshore EMIs |
Regulation of crypto activity in El Salvador
Until June 2021, there was no direct regulation of cryptocurrencies in El Salvador. Bitcoin and other digital assets were used only as a private means of payment, without official status in the financial system.
On May 17, 2017, the Central Bank of El Salvador (BCR) issued a warning that cryptocurrencies are considered high-risk assets and are used at one’s own risk. Financial activity legislation did not include digital assets in the list of regulated instruments.
Bitcoin Law (June 2021), the world’s first legalization of Bitcoin
On June 9, 2021, the Salvadoran parliament passed the Bitcoin Law, recognizing Bitcoin as an official means of payment on par with the US dollar. This made the country the first in the world where cryptocurrency received legal tender status.
Key measures:
- All businesses were required to accept Bitcoin for payment (if technically possible).
- The Chivo Wallet government app was launched.
- Every citizen of El Salvador was given $30 in BTC as an incentive.
- A network of Bitcoin ATMs was installed.
- Digital subsidies and programs to integrate BTC into the economy were introduced.
Crypto regulation reform in El Salvador on January 30, 2025
In early 2025, the Salvadoran Assembly revised the Bitcoin Law (Decreto N° 57, 2021) as part of an agreement with the International Monetary Fund (IMF), which was part of the terms of a $1.4 billion loan program.
Key changes:
- Accepting Bitcoin is now voluntary; companies are no longer required to accept BTC as payment.
- The word “currency” has been removed from the text of the law.
- Taxes and government fees can now only be paid in US dollars.
- The state payment system Chivo Wallet is gradually being transferred to private management.
These changes have created an ambiguous situation. By definition, the term legal tender implies mandatory acceptance as payment,
but the new version makes this right voluntary. Lawyers note that the norm effectively neutralizes the previous mechanism of mandatory acceptance of Bitcoin.
Current status of cryptocurrency in El Salvador
In practice, Bitcoin remains a permitted means of payment, but is not a mandatory payment instrument. At the same time, the government continues to hold about 6,246 BTC (as of February 2025) and continues to buy the asset despite the IMF’s recommendation to suspend government purchases.
Transition to the new LEAD system
On January 11, 2023, Salvadoran President Nayib Bukele signed the Digital Asset Issuance Law (LEAD), which came into force 90 days after its publication in the official gazette (April 2023). It became the basis for the modern crypto regulatory system.
LEAD became the basis of the modern crypto regulatory system and regulates all types of digital assets: tokens, stablecoins, NFTs, DeFi, RWA (tokenized real assets).
Key changes:
- The CNAD (Comisión Nacional de Activos Digitales) was created as an independent regulator.
- DASP (for non-Bitcoin assets) and BSP (for Bitcoin) licenses were introduced.
- Strict rules were established: AML/KYC, cybersecurity, financial reporting, and customer protection.
Key LEAD reforms
Major changes in El Salvador’s crypto regulation, which came into force in the fall of 2024:
| Centralization of regulation |
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| Mandatory public registries of cryptocurrency companies in El Salvador |
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| Strengthened AML/CFT requirements |
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Current regulatory structure (2025)
As of 2025, the CNAD is the sole authority responsible for the complete oversight of the crypto market in El Salvador.
The CNAD is responsible for:
- Registration and licensing of crypto businesses;
- Issuing BSP and DASP licenses;
- AML/KYC/KYT oversight;
- Cybersecurity and data protection oversight;
- Transparency of ownership and transactions.
SSF and BCR are only indirectly involved:
- SSF — financial stability oversight;
- BCR — control of fiat operations.
Tax Regime
Companies registered in the Digital Asset Service Providers Registry (RPSAD) in El Salvador enjoy one of the most attractive tax regimes in Latin America.
According to Article 36 of the Digital Asset Issuance Law (LEAD, 2023), licensed DASP are fully exempt from:
- Corporate tax (0%) on income from digital asset transactions (trading, storage, issuance, DeFi, NFT, RWA).
- Capital gains tax (0%) on the purchase, sale, or transfer of digital assets.
- Transfer tax and other fees on the nominal value of crypto assets.
- Withholding tax on dividends and interest if the payments are related to digital assets.
- VAT on services related to the issuance, certification, or transfer of digital assets.
The exemption applies only to transactions involving digital assets. Income from fiat services (e.g., consulting in USD) is subject to the standard corporate tax rate of 30%.
Conclusion
In conclusion, El Salvador is an attractive commercial jurisdiction with good economic growth and opportunities for foreign investment. Although registering a business in this country may not be the cheapest, there are certain advantages, including the ability to specify cryptocurrency activities and to obtain a DASP license in El Salvador or a Bitcoin license in El Salvador.
Of particular interest is the fact that El Salvador has become the first state to officially recognize Bitcoin as a legal tender. This creates new opportunities for businesses related to cryptocurrencies and opens the way for innovation in this field.
If you are interested in the regulation of cryptocurrency transactions in El Salvador, it is recommended to contact the experts of Gofaizen & Sherle, who can provide you with the necessary information and advice on the subject or provide you with a comprehensive solution with the guaranteed result of registering your cryptocurrency company in El Salvador.
FAQ about crypto license in El Salvador
What is a crypto license in El Salvador?
A crypto license in El Salvador is a state license for companies legally working with cryptocurrencies. It is issued by the Central Reserve Bank (BCR) and ensures legitimate activities. Companies must comply with anti-money laundering regulations and ensure the security of customer data.
How do I get a crypto license in El Salvador?
A Crypto License in El Salvador requires a minimum of two partners and the presentation of a passport of a legal representative. All required documents must be notarized or legalized at the Salvadoran consulate. Having a local director and agent can make it easier to obtain a cryptocurrency license in a particular state.
How long does it take to obtain a crypto license in El Salvador?
It takes up to 20 business days to obtain a crypto license in El Salvador, provided that complete and required information is provided in the application. If the request is incomplete, the applicant has 5 business days to fill in the missing information.
How much does it cost to obtain a crypto license in El Salvador?
Getting a crypto license in El Salvador includes an initial registration state fee of $6,270 and a renewal state fee of $4,050 per year. Additional registration certification costs $50 or the equivalent in bitcoins.
Why did El Salvador make Bitcoin a legal tender?
El Salvador has made bitcoin a legal tender because the country has no currency of its own and all payment transactions are in U.S. dollars. The recognition of Bitcoin as an official instrument will make remittances easier for citizens and companies, especially those working abroad. This strategic decision is aimed at developing El Salvador’s economy and opening new opportunities for the country.
What types of crypto licenses are available in El Salvador?
There are two types of licenses in El Salvador: Bitcoin License (for companies working with BTC as a means of payment) and DASP License (for digital asset providers and exchanges). Both are regulated by the Comisión Nacional de Activos Digitales (CNAD) under the LEAD 2023 law.
Which authority regulates crypto licenses in El Salvador?
The crypto sector in El Salvador is regulated by the Comisión Nacional de Activos Digitales (CNAD), which is responsible for licensing and supervision. AML/KYC compliance is monitored by the Banco Central de Reserva (BCR), while financial reporting and compliance with requirements is regulated by the Superintendencia del Sistema Financiero (SSF).
What taxes apply to crypto companies in El Salvador?
Companies registered in the RPSAD Registry are exempt from corporate tax (0%), capital tax, and digital asset duties. The exemption system was introduced by the LEAD (2023) law.
Can foreign companies obtain a crypto license in El Salvador?
Yes. Foreign companies can obtain a license if they have a local agent and a legal address. The process is completely remote, including notarization of documents and apostille.
What are the capital requirements for crypto companies?
There is no minimum capital requirement, but the CNAD requires proof of sufficient resources to cover operating expenses and ensure AML procedures.
Can a Salvadoran license be used for international activities?
Yes, the DASP license is recognized in many Latin American countries and allows you to conduct business with non-residents, including accepting international payments and issuing tokens under local jurisdiction.
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