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Updated: Dec, 29 2025

Crypto License in El Salvador

Assistance in creating or purchasing a licensed crypto company in El Salvador. Register as a VASP for your cryptocurrency project, and open a bank account. Ask for a consultation today.

Quick facts: El Salvador Crypto License

License Type Digital Asset Service Provider (DASP)
Regulator National Commission for Digital Assets (CNAD)
Timeframe from 2 months
Government fees from 5,475 USD
Minimal capital No (adequate capital required)
Corporate tax 0% (with tax benefits)
Key advantages Jurisdiction truly focused on crypto with advanced adoption; El Salvador is a leader in Latin America for crypto regulation

El Salvador is one of the most exciting jurisdictions in the world for cryptocurrency. El Salvador’s regulatory framework and crypto-friendly policies have positioned the country as a global pioneer. The Central American state is famous for its Bitcoin Law, which qualifies BTC as a legal tender in the country. This is the first-ever country to register cryptocurrency as a legal tender. The adoption of Bitcoin as legal tender is intended to enhance financial inclusion and make remittances easier. These policies have had a significant impact on El Salvador’s economy, driving innovation and financial inclusion. El Salvador’s permitting environment allows for facilitated crypto marketing El Salvador. The government has launched several government initiatives to promote cryptocurrency adoption and support blockchain businesses, further strengthening its leadership in the region and Latin America.

  • The Bitcoin country: El Salvador recognized BTC as legal tender
  • Crypto-friendly regulator
  • Business-friendly regulation
  • Fast growing economy

In this guide to the crypto license in El Salvador, you will learn about the requirements, regulations, and important things to know before starting your crypto project in El Salvador. We will explain how to register company in El Salvador and proceed to obtaining a VASP license in the country.

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Regulatory Overview: Digital Assets Services Providers license / Bitcoin Services Providers license in El Salvador

The crypto license in El Salvador has been created as a consequence of the Bitcoin Law. At first, the Central Reserve Bank created the BTC Service Provider license, for all companies offering BTC-only services. Later on, the National Commission for Digital Assets (CNAD) developed a general framework named Digital Asset Services Providers (DASP, or PSAD in Spanish), under the regulatory guidance of the Digital Asset Issuance Act.

In August of 2023, the CNAD issued the reference text for getting the DASP license: Reglamento de Proveedores de Servicios de Activos Digitales (Regulation of Digital Asset Services Providers). Though licenses were available before, the regulator is working on creating clear rules for all participants, especially regarding the classification and regulation of crypto assets.

To secure a crypto license in El Salvador, a project must comply with the standard requirements such as FATF-compliant AML-KYC policies and procedures. The Digital Asset Issuance Act is a key piece of legislation that outlines the registration process for service providers, issuers, and certifying entities.

Since the voting of the Bitcoin Law in June 2021, El Salvador is a notorious cryptocurrency-friendly country. It is indeed legal and very positively received to engage in cryptocurrency business in this jurisdiction.

However, to legally run a crypto project in or from El Salvador, it is necessary to obtain a crypto license. The process to obtain a crypto license involves submitting an application to the relevant authority, meeting compliance requirements, and paying the necessary fees. Obtaining a crypto license is essential for legal operation and business growth within the country’s regulatory framework. Two licenses exist in Salvador, one of which is issued by the Central Bank of Reserve and only permits to work with Bitcoin (BTC Service Provider License). There are several types of crypto licenses in El Salvador, each designed for different business models and regulatory needs.

The main crypto license allowing to operate as a crypto company in El Salvador is called the PSAD (Proveedor de Servicios de Activos Digitales) or DASP License, in English (Digital Assets Services Provider). It is issued and regulated by the National Commission on Digital Assets (CNAD in Spanish, for Comisión Nacional de Activos Digitales).

Who is the regulatory authority behind the El Salvador crypto license?

The CNAD is an independent institution under the rule of the Ministry of Economic of El Salvador. It was created by law as the regulator and national authority for crypto companies in El Salvador, and it oversees the implementation of the Digital Asset Issuance Act.

Which activities are allowed with a El Salvador VASP license?

There are two different types of licenses in El Salvador:

  • BTC Service Provider;
  • Digital Asset Service Provider.

The BTC Service Provider license is mainly targeted at domestic small businesses, willing to offer services related to Bitcoin only. This is relevant to the life of the Salvadoran economy, as Bitcoin is legal tender in the country and bitcoin transactions are permitted under this license. Bitcoin mining in El Salvador utilizes renewable volcanic energy, attracting ESG-focused investors.

The Digital Asset Service Provider license is the main license in El Salvador. It allows for numerous crypto activities, such as:

  • Crypto exchange and crypto-fiat exchange;
  • Sales of digital assets and digital asset derivatives;
  • Custody of digital assets and wallets;
  • Promote, structure, and manage all types of investment products in digital assets;
  • Operations on behalf of third parties (transfer of digital assets, safeguarding, orders to buy and sell digital assets and derivative digital assets);
  • Bitcoin transactions as part of broader crypto activities.

It is also worth mentioning that issuing a token or creating a stablecoin, requires a separate registration with the regulator before it is allowed to happen. The scope of the license also covers the regulation of crypto assets under the current legal framework.

In summary, the regulatory environment in El Salvador is designed to support crypto businesses through clear rules and compliance requirements. Crypto licenses, including El Salvador crypto licenses, are essential for legal operation, and obtaining a crypto license ensures that companies can participate in the country’s evolving digital asset ecosystem while remaining compliant with local laws.

What are the key advantages of obtaining a Salvador Crypto License

As one of the most stable and growing country in Latin America and in the whole world, El Salvador has a lot to offer to crypto entrepreneurs and blockchain projects.

  • El Salvador is THE crypto country: this is an undisputed fact since the passing of the Bitcoin Law in 2021. The country is growing and expanding fast economically, driven by the crypto market. Crypto businesses operating from El Salvador therefore benefit from the country’s reputation;
  • Fast set-up: it can take as few as 7 weeks to be fully operational with a DASP license in El Salvador. This requires however a very minute preparation and it is fair to warn entrepreneurs to expect longer delays;
  • Incentivizing framework: activities that are oftentimes not allowed by crypto licenses are explicitly permitted by the Salvadorian framework. This includes the emission of stablecoins (with the prime example of Tether being registered in this jurisdictions) and the formation of crypto hedge funds;
  • Tax benefits for DASPs: one of the main advantages for crypto companies is the availability of tax incentives, including exemptions from capital gains, income, and transfer taxes. A cryptocurrency company licensed in El Salvador can benefit from tax exemption on certain digital asset activities, making the country highly attractive for digital asset service providers;
  • No economic substance requirements: the Digital Assets Services Providers license in El Salvador doesn’t require relocation. A physical address and a local Compliance Officer are basically the only domestic requirements for El Salvador crypto companies.

Types of licenses in El Salvador

What are the different crypto licenses available in El Salvador?

There are two different types of licenses in El Salvador:

  • BTC Service Provider;
  • Digital Asset Service Provider.

The BTC Service Provider license is mainly targeted at domestic small businesses, willing to offer services related to Bitcoin only. This is relevant to the life of the Salvadoran economy, as Bitcoin is legal tender in the country.

The Digital Asset Service Provider license is the main license in El Salvador. It allows for numerous crypto activities, such as:

  • Crypto exchange and crypto-fiat exchange;
  • Sales of digital assets and digital asset derivatives;
  • Custody of digital assets and wallets;
  • Promote, structure, and manage all types of investment products in digital assets;
  • Operations on behalf of third parties (transfer of digital assets, safeguarding, orders to buy and sell digital assets and derivative digital assets).

It is also worth mentioning that issuing a token or creating a stablecoin, requires a separate registration with the regulator before it is allowed to happen.

Tax benefits of El Salvador crypto companies

Tax benefits for crypto company in El Salvador

Before getting started with any cryptocurrency license in El Salvador, it’s important to acknowledge the tax benefits and conditions of authorized companies.

Digital Assets Services Providers (DASP) are exempt from corporate income tax and from VAT (value added tax), on activities pertaining to cryptocurrency. This is a very significant advantage for businesses, given that the usual corporate income tax rate in El Salvador, applicable to other industries but not to crypto companies, is 25% corporate income tax on income under 150,000 USD, and 30% on income above that.

Entrepreneurs should though keep in mind that the withholding tax (tax applicable to distributing dividends to shareholders of the company) in El Salvador still applies to DASP licensed companies, at a rate of 20% to 25% for non-resident investors and shareholders.

All in all, the tax benefits provided by El Salvador to its licensed Digital Assets Services Providers is a major advantage for entrepreneurs of the cryptocurrency industry. It allows to operate with a wide margin of operation, within one (if not the most) reputed countries for everything related to crypto.

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What are the application requirements for a DASP License in El Salvador

Duration 2 to 6 months
Local office No
Local director No
Accounting and auditing Yes
Economic substance No
Government fee from 5,475 USD
Corporate income tax (CIT) 0% with tax benefits
Withholding tax (WHT) 12%

For a cryptocurrency company to engage in crypto activities in El Salvador, a certain number of requirements must be met before the application is filled out for review by the CNAD. These requirements are of various nature: corporate, professional, technical, and legal.

  • Limited liability company registration in El Salvador, including submission of corporate documents to the commercial registry, which is the authority responsible for formal company registration and legal validation;
  • Detailed organizational chart;
  • Local director or legal representative;
  • Cybersecurity officer;
  • Compliance officer;
  • AML-KYC policies and processes;
  • Data protection systems;
  • Detailed business plan, including a description of the applicant’s business model, target markets, and long-term plans;
  • Description of all the digital assets that the company will work with;
  • Actual customer support & transparent information to the clients;
  • Registration as digital assets services providers in order to provide digital asset services in compliance with local regulations.

The first requirement is to set up a company in El Salvador. The DASP license can only be granted to a Salvadorian legal entity. The company should then provide a detailed organizational structure with a presentation of every participant.

Among the team of the company, there should be at least one person responsible for cybersecurity duties, under the position of Computer Security Officer. Another individual shall be appointed by the company as a Compliance Officer, in order to ensure continuous compliance with the laws and regulations pertaining to cryptocurrency activities in El Salvador.

On the technical and financial levels, the applicant must demonstrate its ability to offer the digital services it intends to provide. In this regard, the applicant must disclose the list of the digital assets it plans to work with and a description of each of these cryptocurrencies.

If the crypto project is willing to launch its own coin or token, it should look into the Law on Emitting Digital Assets once it has been licensed but shall already describe the token and its intended use in the application.

The crypto company is required to have and demonstrate its processes and systems which:

  • Provide user support as necessary;
  • Safeguard the personal information of all parties;
  • Maintain a program against money laundering and financing of terrorism, following the Salvadorian law and the guidelines of the Financial Action Task Force (FATF).

Finally, the applicant must pay the registration fee of 5,475 USD.

What is the step-by-step crypto licensing process in El Salvador?

As a crypto-friendly and business-incentivizing jurisdiction, the process to form a cryptocurrency company in El Salvador is as comprehensive as possible.

STAGE 1
4 weeks

COMPANY FORMATION IN EL SALVADOR AS A LIMITED LIABILITY COMPANY

The registration of a company for a cryptocurrency business in El Salvador is done entirely online. A standard set of certified documents about the shareholder(s) and the parent legal entity (if applicable) is sufficient to register a Salvadorian Limited Liability Company. Only this type of legal entity can apply for the crypto license in El Salvador. You need to prepare notarized and apostilled passports for all directors and shareholders for company registration.

The company must receive a tax number in El Salvador to complete its registration. It is also required to have a local director or representative.

The complete incorporation process takes approximately 4 weeks.

STAGE 2
2 weeks

PREPARATION TO COMPLY WITH THE REQUIREMENTS OF THE DIGITAL ASSETS SERVICES PROVIDERS FRAMEWORK

Before company incorporation in El Salvador, you have to prepare a set of corporate documents, demonstrate compliance of the systems and procedures, and fulfill the personnel requirements:

  • The appointment of a Compliance Officer;
  • The appointment of a Computer Security Officer;
  • The appointment of a local director or a legal representative in El Salvador.

During the compliance and regulatory checks, the financial investigation unit (UIF) plays a key role in monitoring anti-money laundering (AML) compliance, investigating suspicious activities, and ensuring adherence to international standards such as those set by FATF.

STAGE 3
from 3 weeks

APPLICATION TO THE EL SALVADOR CRYPTO LICENSE

The process is straightforward: the applicant fills out a form and encloses the necessary attachments to their application. Once complete, the regulator will revert within 20 days. Adding the 4 weeks necessary for incorporation, this period makes El Salvador one of the fastest licensing processes to kickstart your crypto business.

A crypto company that is fully compliant with domestic laws and regulations can open a bank account in El Salvador.

FAQ - Crypto License in El Salvador

Is cryptocurrency activity legal in El Salvador?

Yes, cryptocurrency activities are legal in El Salvador. They do, however, require a license in every case. There are two licenses in El Salvador: one is Bitcoin-specific and delivered by the Central Bank of Reserve. The other is a complete authorization and is managed by the National Commission of Digital Assets.

Do you need a license to trade cryptocurrency in El Salvador?

Trading one’s own fund doesn’t require a license in El Salvador.

Who can perform crypto activities in El Salvador?

Limited liability companies registered in El Salvador, having successfully applied for a Digital Asset Service Providers license (PSAD) in the country, are allowed to perform crypto activities in and from El Salvador.

What is the digital assets law in El Salvador?

There are different laws in El Salvador related to digital assets. From example, the Bitcoin Law officially made BTC a national currency of El Salvador. The Law on Digital Assets formalized a framework for companies engaged in the provision of digital assets service.

The main digital assets law in El Salvador on the basis of which the country’s license was created is the Bitcoin Law, which adopted Bitcoin as a legal tender.

Do I need to relocate to El Salvador to form a crypto licensed company?

No, El Salvador’s crypto framework doesn’t require directors or shareholders to be resident of the country.

Is El Salvador a crypto friendly country?

Absolutely, El Salvador is considered to be the leading offshore country for crypto startups.

Start your crypto company in El Salvador today

Request more information about the cryptocurrency license in El Salvador. Leave a request and receive personalized expert advice for your project with a dedicated consultant, entirely free of charge.

Contact our team to receive a free consultation about licensing your crypto startup in El Salvador. LegalBison’s legal expert will help you assess your project and design the most efficient solution around it. The first consultation is entirely free and we guarantee an initial response within 24 business hours. Inquire now!

Crypto License image
Crypto License Consulting Team

Legal experts in designing solutions for crypto licensing worldwide.

Sabir Alijev image
Sabir Alijev Specialist - Partner

Corporate finance specialist and expert about FinTech regulations worldwide.

FAQ - Crypto License in El Salvador

Is cryptocurrency activity legal in El Salvador?

Yes, cryptocurrency activities are legal in El Salvador. They do, however, require a license in every case. There are two licenses in El Salvador: one is Bitcoin-specific and delivered by the Central Bank of Reserve. The other is a complete authorization and is managed by the National Commission of Digital Assets.

Do you need a license to trade cryptocurrency in El Salvador?

Trading one’s own fund doesn’t require a license in El Salvador.

Who can perform crypto activities in El Salvador?

Limited liability companies registered in El Salvador, having successfully applied for a Digital Asset Service Providers license (PSAD) in the country, are allowed to perform crypto activities in and from El Salvador.

What is the digital assets law in El Salvador?

There are different laws in El Salvador related to digital assets. From example, the Bitcoin Law officially made BTC a national currency of El Salvador. The Law on Digital Assets formalized a framework for companies engaged in the provision of digital assets service.

The main digital assets law in El Salvador on the basis of which the country’s license was created is the Bitcoin Law, which adopted Bitcoin as a legal tender.

Do I need to relocate to El Salvador to form a crypto licensed company?

No, El Salvador’s crypto framework doesn’t require directors or shareholders to be resident of the country.

Is El Salvador a crypto friendly country?

Absolutely, El Salvador is considered to be the leading offshore country for crypto startups.

Start your crypto company in El Salvador today

Request more information about the cryptocurrency license in El Salvador. Leave a request and receive personalized expert advice for your project with a dedicated consultant, entirely free of charge.

Contact our team to receive a free consultation about licensing your crypto startup in El Salvador. LegalBison’s legal expert will help you assess your project and design the most efficient solution around it. The first consultation is entirely free and we guarantee an initial response within 24 business hours. Inquire now!

Crypto License image
Crypto License Consulting Team

Legal experts in designing solutions for crypto licensing worldwide.

Sabir Alijev image
Sabir Alijev Specialist - Partner

Corporate finance specialist and expert about FinTech regulations worldwide.