El Salvador Crypto License

Relatively low capital requirements, a swift application process and affordable ongoing costs make El Salvador the ideal choice for crypto / digital asset firms looking to break into the South America crypto scene. In 2023, El Salvador’s Legislative Assembly passed the Digital Assets Issuance Law (LEAD), paving the way for the full regulation of crypto instruments and projects. As the first LATAM country to officially adopt Bitcoin as legal tender, El Salvador has paved the way for crypto regulation in South America.

How To Get a Crypto License in El Salvador – A Step by Step Guide

  1. Schedule an initial discussion with Atomiq Consulting in order to discuss your plans for crypto regulation in El Salvador. During the call our team of consultants will suggest the best path forward, review the full set of license requirements, and discuss all costs.

  2. Once an agreement has been signed by both parties, we’ll commence with the gathering of documentation pertaining to your group. Our team will work with your group to outline everything CNAD, the local regulator, requires for license approval.

  3. During the document gathering phase we’ll work diligently on the necessary regulatory requirements: business plan, models, organizational structure as well as compliance / AML policies.

  4. Incorporate a local company in El Salvador, either a Variable Capital Stock Company (S.A. de C.V.) or a Simplified Stock Company (SAS).

  5. Upon successful company registration we’ll open a local bank account.

  6. El Salvador has two types of licenses, we’ll register both on behalf of your company, the first being a Bitcoin Services Provider (BCR).

  7. Upon successful BCR registration we’ll then submit the application for a Digital Asset Service Provider (DASP).

  8. During the application review process, CNAD may request an interview. Our team will assist with interview preparation and guidance.

  9. During the application review, our team will update your group regarding the latest updates and communication with CNAD

  10. Receive your official crypto license and commence regulated operations in El Salvador’s pro-blockchain environment.

El Salvador DASP Regulation – Key Requirements

  • Licensing (DASP/BSP): Crypto exchanges and digital asset firms engaging in exchange, custody, or other virtual asset services must hold regulation in order to legally operate in El Salvador. Simply registering a local business is not permitted. El Salvador offers two license types: BSP and DASP, we recommended obtaining both.
  • AML/KYC & Transaction Monitoring: Registered digital asset service providers (DASP) must implement robust anti-money-laundering (AML) and Know-Your-Customer (KYC) policies, including transaction monitoring (KYT) and reporting of suspicious activity to regulators. If your group does not have experience with the establishment of these protocols, our team can assist.
  • Local Directors: CNAD, the local regulator, requires a minimum of 3 local directors: Legal Representative, Compliance Officer, and Deputy Compliance Officer. As part of our services, we can assist in sourcing these roles.
  • Taxes: Corporate taxes in El Salvador are set at 30% but this should not deter one from the jurisdiction as there is an exemption for digital asset activities where taxes drop to 0%.
  • Reporting & Records: Crypto companies are required to maintain accurate financial records and submit periodic reports (including financial and compliance documentation) to regulators as part of ongoing oversight.

What is the Difference Between a Bitcoin Service Provider (BSP) and Digital Asset Service Provider (DASP) in El Salvador?

El Salvador is unique in the sense that it has two types of licenses: Bitcoin Service Provider license (BSP) and Digital Asset Service Provider (DASP). Originally, the only type of license available in El Salvador was the Bitcoin Service Provider license which was overseen by the Central Bank. As El Salvador has grown in popularity for cryptocurrency exchanges, a new type of license emerged: Digital Asset Service Provider (DASP). Nowadays, the primary use of the BSP license is for the physical exchange of Bitcoin to other currencies. Exchanges looking to apply for a license would want to have the DASP license which covers the type of activity needed: exchange services, staking, and trading. Because DASP licensing is relatively new, exchanges like Binance often hold both licenses but this is no longer a requirement for new exchanges. 

El Salvador Crypto License – Some Important Facts

Requirement Details
Taxes 30%
Local Office Required
Local Directors Yes
Minimum Capital Requirement $2,000
License Approval Period 3 – 6 months
DASP License Covers crypto exchanges
Permitted Activities Token issuance (ICO), yields/staking, exchange
Legislative Framework Digital Assets Law 
BSP License In our opinion not required for new applications

Why Apply for a DASP Crypto License in El Salvador?

June 8th, 2021 marked an important milestone for El Salvador whereby Congress approved the much anticipated BTC Law, thereby ushering El Salvador to the world stage of early cryptocurrency adopters. Relatively low capital, manageable ongoing costs and a speedy application process make El Salvador an excellent consideration for startups looking for cryptocurrency / digital asset licensing.

Applying For a Crypto License in El Salvador – Key Takeaways

  • A pioneer in digital assets having adopted bitcoin as legal tender in 2021
  • 2 license types: Bitcoin Service Provider license (BSP) and Digital Asset Service Provider (DASP)
  • $2,000 in paid up capital
  • Recommended budget of $30,000
  • The majority of exchanges apply for a DASP license
  • Local office and staff are required
  • License approval period 3 – 6 months

Atomiq Consulting – Your Cryptocurrency / Digital Asset Licensing Partner

Only a handful of consultation firms possess the in-depth knowledge and experience that is required to successfully apply for a cryptocurrency license in El Salvador. Our combined years of industry experience and expertise in the realm of financial regulation are just a couple of the reasons that brokers around the globe have chosen Atomiq Consulting to process their cryptocurrency license application. Should you have additional questions about the application process or are simply looking to get started, we are more than happy provide our assistance.

How to Obtain BSP / DASP Crypto Regulation in El Salvador? – Contact Us for a Quote!

To learn more about the license application process, ongoing charges, and address any other questions related to a digital asset / cryptocurrency license in El Salvador, don’t hesitate to contact us.

    El Salvador VASP / Crypto License FAQ

    Are there any licensed crypto exchanges in El Salvador currently for sale?

    In addition to license consultation, we can also assist you in acquiring an existing exchange or brokerage. Because our offers vary based on availability in the market, it is best to contact us directly to discuss our current offers.

    What is the average approval period for obtaining a crypto license in El Salvador?

    Applications for a digital asset license in El Salvador should expect to wait around 2 – 5 months for license approval.

    Does a DASP license in El Salvador allow for passporting?

    No, this license only allows one to operate in El Salvador. Additional licensing would be required in order to target other markets.

    Which jurisdictions are similar to El Salvador?

    Those interested in crypto regulation in South America should also explore options in regions like Panama and Curacao.

    Is a review of exchange software required for CNAD approval?

    Yes, CNAD will need to see evidence that the software is functional and has the necessary documentation. In some cases a live video interview is required as part of the approval process.

    Which regulatory body or agency regulates crypto currency in El Salvador?

    The Central Reserve Bank of El Salvador oversees cryptocurrency regulation for the Bitcoin Service Provider License; the National Commission of Digital Assets (CNAD) is responsible for regulating the DASP license.

    What is the difference between a SAS and S.A. de C.V. company formation in El Salvador?

    A Simplified Stock Company (SAS) is a more flexible option, only requiring a single shareholder with no minimum capital requirements. A Variable Stock Company (S.A. de C.V.) requires 2 shareholders, a minimum of $2,000 in capital plus more reporting. Those looking for the most simple structure should opt for the SAS company formation.

    Is there a VASP license in El Salvador?

    Yes. In El Salvador it is referred to as a DASP, Digital Asset Service Provider License.

    How much does it cost to obtain a crypto license in El Salvador?

    A budget of approximately $35,000 is recommended in order to cover the initial consulting, government, and administrative fees. One can expect to pay around $3,000 per month for local director fees.

    What is the corporate tax rate in El Salvador?

    30%  Note that entities engaging in digital activities are subject to a 0% taxation rate.

    Can government fees and taxes be paid in cryptocurrency such as Bitcoin?

    Yes, this is permitted.

    Is there a directory of licensed digital asset exchanges in El Salvador?

    Yes, all exchanges licensed by the Central Reserve Bank of El Salvador can be found in this public directory.

    About the Author

    This article was written by Jonathan Baumgart, Founder and CEO of Atomiq Consulting. With over a decade of experience in the forex industry, Jonathan specializes in helping businesses launch brokerages and navigate global licensing requirements.

    Connect with Jonathan on LinkedIn



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