El Salvador crypto license: Legal crypto business with BSP/DASP
El Salvador became the first country to legalise Bitcoin in 2021. The main regulatory framework in this sector is the 2023 Digital Assets Act, and the CNAD (National Commission on Digital Assets) acts as the principal regulator. The country offers optimal conditions for the favourable development of the crypto business: 0% corporate tax on transactions involving digital assets, transparent conditions, the opportunity to participate in initiatives to implement blockchain-based payments and national programmes in the field of financial technology, trust from investors and banks, legal predictability and a number of other advantages confirmed by the LEAD Act and an official CNAD document.
How long does it take to obtain a crypto license in El Salvador? Just a few months, provided all requirements (regarding capital, KYC customer identification policy, and AML anti-money laundering) and local laws are met. The experienced team at Intelligent Solution Group is ready to provide professional assistance in obtaining a cryptocurrency license. Whether you are an existing company looking to expand or a budding entrepreneur, we help you navigate this process with confidence and efficiency.
For which types of crypto businesses is El Salvador of interest?
El Salvador is an attractive destination for various types of businesses involved in digital assets:
- Exchange. El Salvador’s cryptocurrency exchange license allows operators to launch trading platforms for Bitcoin and other cryptocurrencies, whilst ensuring strict compliance with AML/KYC requirements and minimising legal risks.
- Custody & Wallet. A license for a crypto wallet in El Salvador opens up opportunities for the storage and management of clients’ and investors’ assets (‘Bitcoin banks’).
- OTC. Companies operating in the over-the-counter trading sector and holding a DASP license are exempt from municipal taxes and VAT. Currency risks are minimised thanks to the economy’s peg to the USD.
- Tokenisation. A license for asset tokenisation and operations in accordance with the LEAD Act will allow for the tokenisation of debt, real estate, agricultural and other commodities.
- Consequently, El Salvador is well-positioned to attract exchange and payment services, stablecoin issuers, custodial services, and investment platforms for conducting Security Token Offerings (STOs).
What kind of crypto license can you buy in El Salvador?
In El Salvador, there are two types of licenses available that permit the lawful conduct of cryptocurrency-related activities: Bitcoin Service Provider (BSP) and Digital Asset Service Provider (DASP). The former is designed to operate exclusively with Bitcoin, whilst the latter covers a wider range of digital currencies.
It is essential to clearly understand the difference between the two types of license.
BSP license, El Salvador
This option is ideal for companies that use Bitcoin as legal tender. The regulator is the CNAD, with the support of the BCR (Central Reserve Bank). Key services:
- custodial wallets;
- BTC exchange;
- Bitcoin infrastructure;
- services for accepting and processing payments.
In El Salvador, Bitcoin has a unique legal status. This will allow companies with a BSP license to legally and easily integrate into the country’s economy.
DASP license, El Salvador
This license is ideal for businesses dealing with a wider range of digital assets. It is therefore suitable for businesses that do not wish to limit themselves to Bitcoin alone and require greater flexibility. It is regulated by the CNAD.
Holding a DASP license enables a business to cover various types of operations, including:
- the exchange and custody of digital assets;
- token issuance;
- tokenisation;
- the operation of trading platforms and cryptocurrency exchanges.
Which license should you choose – BSP or DASP? It all depends on the company’s strategic objectives and its business model. Our specialists will help you decide which is right for you, based on your type of activity and its specific features.
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Requirements for a crypto license in El Salvador
Can foreign companies obtain a crypto license in El Salvador? Yes, they can, provided all requirements under the CNAD and LEAD are met. The process is entirely remote.
How do you apply for a BSP or obtain a DASP license? Companies must meet a number of conditions:
- register a legal entity in El Salvador;
- have at least two shareholders, a director and one alternate director;
- submit a business plan confirming readiness to provide digital services, and prepare AML/KYC policies (one of the key requirements);
- appoint a local anti-money laundering representative and implement cybersecurity standards for the processing and storage of digital assets;
- pay the government license fee.
Our team will provide expert assistance in ensuring compliance with all requirements, preparing documentation, registering the company and other stages, thereby ensuring successful crypto licensing in El Salvador.
How does the process of obtaining a Crypto License in El Salvador work?
Is it possible to apply for a crypto license in El Salvador on your own? In theory, it is possible, but in practice it is extremely difficult. That is why many entrepreneurs prefer to turn to specialist firms to avoid the risk of their application being rejected.
If you are interested in a ‘turnkey’ crypto license in El Salvador, Intelligent Solution Group is ready to actively assist you in obtaining it. The process consists of several sequential stages, which we handle:
- an initial consultation, during which we analyse your company’s needs and select the appropriate license;
- collection of preliminary documentation, preparation of a notarised and apostilled power of attorney, and development of the organisation’s business model;
- registration of the legal entity and collection of incorporation documents;
- preparation and submission of the licence application;
- opening of a corporate bank account (carried out simultaneously with the previous stage);
- carrying out additional registrations, obtaining a NIT (Número de Identificación Tributaria) and RNC;
- receiving the finalised crypto license.
The result of our experienced team’s work is a successful entry into the global crypto market and the sustainable development of your company.
