Crypto License in El Salvador
What Is El Salvador Crypto License and How Does It Work?
Holding a crypto license in El Salvador is a formal authorization to conduct business legally in the country that was the first to recognize Bitcoin as legal tender. This unique legal approach to regulation emphasizes El Salvador’s openness to innovation and its commitment to helping the digital economy thrive.
The licensing framework, overseen by the National Commission of Digital Assets (CNAD) and issued by the Central Reserve Bank (BCR), covers a wide range of services. Businesses can engage in digital asset exchange, trading platforms, risk evaluation, digital asset placement, investment structuring, custody, and transaction facilitation.
With extensive opportunities in the crypto sector, we will guide you in selecting the right license format — BSP or DASP — to ensure compliance with AML/KYC regulations and local requirements.
Benefits of Crypto License in El Salvador
- Strong Legal Framework – Benefit from a clear and supportive regulatory environment that fosters crypto innovation and ensures smooth business operations.
- Lucrative Tax Benefits – Maximize your profits with zero capital gains tax on Bitcoin transactions, allowing you to scale your business without unnecessary tax burdens.
- Seamless Banking Integration – Gain access to crypto-friendly financial services that simplify transactions, enhance customer onboarding, and strengthen business partnerships.
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Process of Obtaining a Crypto License
- Company Registration – preparing documents and entering the company in the Commercial Registry of El Salvador.
- Obtaining a license – selecting the appropriate type of license, applying CNAD, and depositing at least 5% of the share capital in a corporate account.
- Opening a bank account – once the license is approved, registration with other government agencies, including the Ministry of Labor and the Tax Department, is required.
Our team will ensure a seamless interaction with the regulatory authorities to ensure that your market entry is quick, legal, and efficient.
Requirements for a Crypto License
- Flexible Shareholder Structure – A minimum of two shareholders, which can be either individuals or legal entities, including both residents and non-residents (with a tax identification number in El Salvador).
- Affordable Capital Requirement – $2,000 is the minimum authorized capital for interested parties to set up their crypto business in El Salvador.
- Official Registration – Your company must be legally registered with the National Commission on Digital Assets (CNAD) to operate in the crypto sector.
- Robust Compliance Framework – Ensure regulatory adherence with the appointment of two AML compliance officers, reinforcing security and transparency in your operations.
- A physical address is a preferable option, but a virtual alternative will also work.
Crypto Regulation
El Salvador has earned recognition as a cutting-edge place to do business in cryptocurrencies with the enactment of El Salvador crypto laws -, the Digital Asset Issuance Law (DAI), on January 11, 2023. This pioneering law creates a clearand business-friendly legal framework, positioning the country as one of the most attractive locations for digital asset service provider (DASP) companies. With its innovative approach and legal clarity, El Salvador offers a unique perspective for crypto businesses looking to operate in a secure and promising environment.
Crypto Taxes in El Salvador
El Salvador crypto taxes prove how pro-crypto this government is. Just check them out in the table below. These features turn this market into a global hotspot for cryptocurrency and blockchain investors and businesses.
Tax Type | Rate & Application |
Capital Gains Tax | 0% — no tax on Bitcoin profits |
Corporate Tax | 15% — for businesses registered in El Salvador |
Foreign Income Tax | 0% — offshore earnings exempt |
VAT | 13% — not applied to Bitcoin transactions |
Income Tax (Personal) | 10%-30% — based on your earnings |
Why Choose El Salvador for Crypto Company Registration?
Let’s sum up the reasons to comply with El Salvador crypto license requirements and start your business in the region. Onwards!
Reason | Explanation |
0% Capital Gains Tax | Keep 100% of your crypto profits — no extra deductions. |
Quick Licensing | Get a legal crypto license in just a few weeks. |
Bitcoin-Backed Economy | Businesses can freely transact in BTC without restrictions. |
No Foreign Income Tax | Earnings from global crypto operations stay tax-free. |
Crypto-Friendly Banks | Enjoy easy banking access for licensed crypto companies. |
Consult with our professional lawyers to take the most out of this legislation and ensure your business plan thrives in such a crypto-friendly environment. Let us walk you through the El Salvador crypto license registration process with the best gains in mind.
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FAQ
How long does it take to obtain a crypto license in El Salvador?
Whether you want to get your El Salvador crypto exchange license or another format approved, it is a pretty fast process — up to twenty business days, on average. If you receive a request to include extra details to your application to complete it, the timeframe for doing so is five business days.
What are the costs involved in registering a crypto company in El Salvador?
El Salvador crypto license costs include initial registration state fees, our legal fees, and renewal state expenditures.
Do I need to be a resident of El Salvador to apply for a crypto license?
While you don’t need to be a resident of the country to offer your business deals locally, it doesn’t mean there is no need to hire representatives for your project locally.
What legal requirements must a crypto business meet in El Salvador?
Consumer protection policies, tax compliance, AML & KYC compliance come hand in hand with the requirements to register a local company with at least two Salvadoran representatives. For more details, contact our team.
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