Case: A unified solution for crypto exchange and processing — a license in El Salvador

What was the client's request?

They needed to obtain a licence to operate with cryptocurrencies and digital assets in a jurisdiction where cryptocurrency is recognised as a legal means of payment. They needed to be able to legally provide crypto exchange and crypto processing services, comply with international AML/KYC standards, and optimise their tax situation.

Why did the client decide to contact us instead of trying to accomplish the task on their own?

The client understood that applying for a license on their own carried risks:

• financial losses could arise due to unnecessary taxes and fines;
• there were temporary losses due to delays in the project launch;
• errors in the choice of jurisdiction would make it impossible to work with the necessary services;
• ignorance of the law could lead to the refusal of a license or the blocking of activities.

What solution did we propose and why?

We proposed that the client obtain a crypto license in El Salvador, because:

• the country has recognised Bitcoin as an official means of payment;
• there is a regulated mechanism for obtaining a crypto license;
• there is a favourable tax environment for digital assets;
• this license allows free connection to the largest crypto exchanges;
• it is possible to open a bank account in El Salvador without any obstacles. 

As part of the solution, we provided registration of a legal entity, preparation of a complete set of documents, support in submitting them to regulatory authorities, and advice on tax obligations.

Were there any difficulties in resolving the request? If so, what were they?

• Developing the company structure to meet regulatory requirements (taking into account AML/KYC).
• Approving the business plan required for submission.
• All difficulties were resolved by engaging local consultants and lawyers.

Case duration?

It took four months to obtain the license.

Result

• The company was registered.
• A corporate bank account was opened and crypto payment solutions were connected.
• Due diligence checks were carried out on all directors, shareholders and ultimate beneficial owners.
• Internal AML/KYC policies were prepared and approved.
• A Salvadoran crypto license was obtained.
• A crypto exchange and crypto processing service with international capabilities was launched.