Is Crypto Legal in El Salvador?
Cryptocurrency is legal and regulated in El Salvador. The jurisdiction has no dedicated crypto statute, regulating digital assets under existing securities, payments and banking law. El Salvador's National Commission of Digital Assets is among the 5 regulators with oversight. Primary legislation: Bitcoin Law.
Derived from 402 sourced facts for El Salvador · last updated · primary sources
Overview
El Salvador operates a dual-framework crypto regime: the Bitcoin Law (Decreto Legislativo No. 57, 2021) grants Bitcoin legal-tender status and mandates merchant acceptance, while the Digital Assets Issuance Law (Decreto Legislativo No. 49, 2023) governs all other digital assets, requiring licensing as a Digital Asset Service Provider (PSAD) for activities including fiat-to-crypto exchange, crypto-to-crypto exchange, and custody. The Comisión Nacional de Activos Digitales (CNAD) issues PSAD licenses and enforces the Digital Assets Issuance Law, with the Superintendency of the Financial System (SSF) and Banco Central de Reserva (BCR) retaining oversight of licensed financial institutions; obliged entities must comply with AML/CFT programs under the Ley Contra el Lavado de Dinero y de Activos (LCLDA), including transaction monitoring and reporting obligations. Bitcoin transactions conducted as legal tender are exempt from capital gains tax, while trading in all other digital assets is likely subject to El Salvador's 10% capital gains tax, creating a material asymmetry in tax treatment that affects product structuring decisions. (asamblea.gob.sv, cnad.gob.sv, mh.gob.sv)
Regulatory Bodies
Reglamento para la Aplicación de las Disposiciones de Prevención del Lavado de Dinero y Activos y Financiamiento del Terrorismo para Proveedores de Servicios de Activos Digitales (Regulation for the Application of Provisions for the…
Banco Central de Reserva (BCR) de El Salvador: (Central Reserve Bank of El Salvador)
Creates the National Commission of Digital Assets (CNAD) as the primary regulator for these activities.
Note: As a newly established entity under the 2023 law, its independent website or full operational details might still be developing, but its mandate is clear.
English Title: Superintendency of the Financial System
Operating Models
9/9 verdictsCan specific business models operate in El Salvador? Each card answers the operational question for one kind of operator. Curated cells reflect counsel-grade review; AI-generated cells should be confirmed before relying on them.
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AI · UnreviewedPermitted, no licensing.
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AI · UnreviewedPrimary Legislation
| Law / Regulation | Year | Scope |
|---|---|---|
| Bitcoin Law | Ley Bitcoin (Bitcoin Law) | |
| Digital Assets Issuance Law | Ley de Emisión de Activos Digitales (Digital Assets Issuance Law) |
Licensing Requirements
Banco Central de Reserva (BCR) de El Salvador: (Central Reserve Bank of El Salvador)
Role: As the central bank, it oversees monetary policy, financial stability, and payment systems. It plays a key role in regulating financial institutions' interactions with legal tender Bitcoin and issues norms for its use in the financial system.
Superintendencia del Sistema Financiero (SSF): (Superintendence of the Financial System)
Role: The SSF regulates and supervises financial institutions, including banks, credit unions, and other financial service providers. Its oversight extends to how these entities handle Bitcoin and other digital assets, ensuring compliance with financial regulations, anti-money laundering (AML), and combating the financing of terrorism (CFT) requirements.
Comisión Nacional de Activos Digitales (CNAD): (National Commission of Digital Assets)
Role: Established by the Digital Assets Issuance Law, CNAD is a specialized body responsible for regulating the issuance, public offering, and transfer of digital assets (excluding Bitcoin as legal tender). This includes overseeing tokenized securities and ensuring investor protection in the digital asset market.
Date: Enacted June 8, 2021; effective September 7, 2021.
Established Bitcoin as legal tender alongside the US Dollar.
Mandates that all economic agents accept Bitcoin as payment for goods and services (with exceptions for those unable to access the technology).
Allows for the payment of taxes in Bitcoin.
Exempts capital gains from Bitcoin from taxation.
Promotes the use of the Chivo Wallet, a government-backed digital wallet.
Reference: Decreto Legislativo No. 57, de fecha 8 de junio de 2021.
URL (Spanish - generally found on official government or legislative archives): While a direct English translation on a government site is rare, the original decree can be found in the Diario Oficial (Official Gazette). For example, a reputable legal resource often hosts it: https://leyes.io/bitcoin-law (Note: This is a legal information site, not the official government gazette, but provides the law text).
Ley de Emisión de Activos Digitales (Digital Assets Issuance Law)
Date: Passed January 10, 2023; effective shortly after publication.
Establishes a comprehensive legal framework for the issuance, public offering, and transfer of digital assets (excluding Bitcoin, which is legal tender).
Creates the National Commission of Digital Assets (CNAD) as the primary regulator for these activities.
Aims to facilitate the issuance of tokenized bonds (e.g., the "Volcano Bonds") and other digital securities, providing investor protection and market integrity.
Defines various types of digital assets and their regulatory treatment.
Reference: Decreto Legislativo No. 637, de fecha 10 de enero de 2023.
URL (Spanish): Similar to the Bitcoin Law, the official text is in the Diario Oficial. A legal resource: https://leyes.io/ley-de-emision-de-activos-digitales
Fully Legal and Encouraged: Trading Bitcoin is entirely legal and explicitly sanctioned by the Bitcoin Law. Individuals and businesses can freely buy, sell, and use Bitcoin for transactions.
Tax Exemptions: Capital gains from Bitcoin are exempt from taxation, making it highly attractive for investment and trading.
Exchanges: Bitcoin exchanges operating in El Salvador are permitted and integrated into the financial system. They are subject to oversight by the SSF and BCR, particularly concerning AML/CFT compliance, consumer protection, and operational stability. The government-backed Chivo Wallet also facilitates Bitcoin trading and conversion.
Permitted, but Not Legal Tender: While not granted legal tender status like Bitcoin, the trading and holding of other cryptocurrencies (altcoins) are generally not prohibited.
Regulatory Framework for Issuance: The Ley de Emisión de Activos Digitales primarily focuses on regulating the issuance of these other digital assets, particularly those classified as securities.
Exchanges for Altcoins: Exchanges that facilitate trading of non-Bitcoin cryptocurrencies operate within El Salvador. These platforms are expected to comply with general financial regulations, including robust AML/CFT measures overseen by the SSF. The CNAD would primarily regulate the issuance and primary market activities of digital assets that fall under its purview, rather than the secondary trading of already existing altcoins not issued in El Salvador. However, any local platform that lists these assets for trading would still be under SSF scrutiny regarding financial crime.
Note: As a newly established entity under the 2023 law, its independent website or full operational details might still be developing, but its mandate is clear. Information is often found on the Ministry of Economy or other related government sites.
AML/KYC Requirements
Ley Contra el Lavado de Dinero y de Activos (LCLDA)
English Title: Law Against Money Laundering and Asset Forfeiture
Purpose: This is the foundational AML/CFT law in El Salvador, applicable to a wide range of obliged entities. VASPs fall under its scope, requiring them to implement robust AML/CFT programs.
Key Aspects: Defines money laundering and asset forfeiture offenses, establishes reporting obligations, and sets penalties.
Purpose: Made Bitcoin legal tender in El Salvador. While primarily focused on the legal tender status and its integration into the economy, it implicitly brought entities dealing with Bitcoin into the regulatory fold of existing financial laws, including AML.
Ley de Regulación de los Proveedores de Servicios de Activos Virtuales (LRPVAS)
English Title: Law for the Regulation of Virtual Asset Service Providers
Purpose: This is the most specific and comprehensive law directly addressing VASPs. It establishes a licensing regime for VASPs and explicitly lays out their AML/CFT obligations, consumer protection measures, and prudential requirements. It covers services such as virtual asset exchange, transfer, custody, and participation in financial services related to virtual asset issuance.
Normas para la Prevención del Lavado de Dinero y Activos y del Financiamiento del Terrorismo (NPLDFT)
English Title: Norms for the Prevention of Money Laundering and Asset Forfeiture and the Financing of Terrorism
Issued by: Superintendencia del Sistema Financiero (SSF)
Purpose: These norms provide detailed requirements for supervised entities (including those handling virtual assets under the SSF's purview) regarding the implementation of AML/CFT policies, procedures, and controls.
Natural Persons: Obtain and verify identity using reliable independent source documents (e.g., valid national identity card, passport). This includes full name, date of birth, nationality, address, and unique identification number.
Legal Entities: Obtain and verify legal name, legal form, address, proof of incorporation, articles of association, names of directors and beneficial owners, and authorized signatories.
Beneficial Ownership: Identify and verify the identity of beneficial owners (individuals who ultimately own or control 25% or more of the entity) for legal entities.
Purpose and Nature of the Relationship: Understand the purpose and intended nature of the business relationship or occasional transaction. This includes understanding the source of funds or wealth, especially for high-value transactions.
Regularly review the customer relationship to ensure that transactions are consistent with the VASP's knowledge of the customer, their business, and risk profile.
Keep customer information up-to-date, especially for high-risk customers.
Monitor for changes in beneficial ownership or customer risk profile.
VASPs must classify customers based on their AML/CFT risk (low, medium, high) and apply enhanced due diligence (EDD) measures for higher-risk customers.
EDD measures may include obtaining additional identifying information, requiring more frequent updates, verifying the source of funds/wealth, and obtaining senior management approval for the relationship.
Politically Exposed Persons (PEPs) are always considered high-risk and require EDD, including senior management approval and establishing the source of wealth/funds.
Obligation to Report: VASPs are legally obliged to report any suspicious transactions or activities to the Financial Intelligence Unit (UIF) without delay, regardless of the amount.
Definition of Suspicion: Suspicion refers to a belief or doubt that funds or assets are proceeds of criminal activity or are linked to the financing of terrorism. This includes transactions that are unusual, complex, abnormally large, or have no apparent economic or lawful purpose.
No Tipping-Off: VASPs and their employees are prohibited from informing the customer or any third party that a STR has been or will be made.
Customer Due Diligence Records: All documents and information obtained during the CDD process (identification, verification, beneficial ownership, purpose of relationship).
Transaction Records: Detailed records of all virtual asset transactions, including transaction date, type, amount, parties involved (originator and beneficiary information), and virtual asset addresses.
STRs: Copies of all suspicious transaction reports filed with the UIF.
Duration: Records must typically be maintained for a minimum of five (5) years from the date of the last transaction or the end of the business relationship, whichever is later.
Superintendencia del Sistema Financiero (SSF)
English Title: Superintendency of the Financial System
Role: The SSF is the main regulator responsible for licensing, supervising, and monitoring VASPs for compliance with the LRPVAS and general financial regulations, including AML/CFT.
Unidad de Investigación Financiera (UIF) / Fiscalía General de la República
English Title: Financial Investigation Unit / Attorney General's Office
Role: The UIF, operating under the Attorney General's Office, is the Financial Intelligence Unit (FIU) of El Salvador. It is responsible for receiving, analyzing, and disseminating suspicious transaction reports (STRs) to relevant law enforcement agencies for investigation.
English Title: Central Reserve Bank
Role: While the SSF primarily supervises licensed VASPs under the new law, the BCR has historically been involved in regulating payment systems and certain aspects related to the adoption of Bitcoin, including the issuance of technical norms. Its role might be more focused on monetary policy and payment system stability, while the SSF handles VASP specific licensing and prudential supervision.
United Nations (UN) Sanctions: Binding on all UN member states, including El Salvador.
Office of Foreign Assets Control (OFAC - U.S. Treasury Department) Sanctions: Critical due to the global reach of the U.S. financial system and the U.S. dollar, and OFAC's extraterritorial jurisdiction.
European Union (EU) Sanctions: Applicable to EU persons and entities, but with global implications for financial flows.
Financial Action Task Force (FATF) Recommendations: While not a sanctions body, FATF sets the international standards for AML/CFT, which El Salvador is expected to implement. These recommendations explicitly address VASPs and include obligations for sanctions screening.
Risk-Based Approach: Assessing the specific sanctions risks associated with their customer base, products, services, geographic locations, and transaction types.
Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD): Collecting and verifying identity information for all customers, including beneficial owners, to understand their risk profile. This forms the basis for effective sanctions screening.
Real-time Screening: Screening all new customers, counterparties, and transactions against relevant sanctions lists before commencing any relationship or facilitating a transaction.
Ongoing Monitoring: Regularly re-screening existing customer bases against updated sanctions lists.
Beneficial Ownership: Screening all individuals and entities involved in a transaction, including intermediaries and ultimate beneficial owners, not just direct customers.
PEP Screening: Screening for Politically Exposed Persons (PEPs) often goes hand-in-hand with sanctions screening, as PEPs can present higher corruption and money laundering risks.
Geographic Restrictions: Identifying and blocking transactions to/from comprehensively sanctioned jurisdictions (e.g., Iran, North Korea, Cuba, Syria, specific regions of Ukraine/Russia) or involving individuals/entities located in or associated with such areas.
Transaction Monitoring: Implementing systems to detect suspicious patterns or red flags that may indicate sanctions evasion.
Reporting: Freezing funds and assets of sanctioned individuals/entities and reporting blocked transactions and suspicious activities to the relevant authorities (e.g., El Salvador's Financial Intelligence Unit – FIU, known as Unidad de Investigación Financiera - UIF).
Record-Keeping: Maintaining accurate and comprehensive records of all transactions, CDD information, screening results, and compliance decisions.
OFAC Sanctions Compliance Guidance for the Virtual Currency Industry: Emphasizes that U.S. sanctions apply to virtual currency activities in the same manner as they apply to traditional financial activities. It details expectations for compliance programs, including sanctions screening, risk assessment, and reporting.
OFAC's Specially Designated Nationals and Blocked Persons (SDN) List: This is the most critical U.S. sanctions list.
OFAC's Consolidated Sanctions List: Includes the SDN List and other non-SDN lists (e.g., Sectoral Sanctions Identifications List).
URL (unofficial but comprehensive map): https://www.sanctionsmap.eu/
Official Journal (search for latest consolidated list): https://eur-lex.europa.eu/homepage.html
UN Security Council Consolidated List: Includes individuals and entities associated with Al-Qaida, ISIL (Da'esh), and the Taliban, as well as those subject to other UN sanctions regimes.
North Korea (DPRK): (U.S., UN, EU sanctions)
Crimea, Donetsk, Luhansk, Kherson, Zaporizhzhia regions of Ukraine: (U.S., EU, UK sanctions due to Russian occupation)
Venezuela: (Specific individuals/entities under U.S., EU sanctions)
Civil Penalties: Can range from thousands to millions of dollars per violation, depending on the program and severity.
Criminal Penalties: For willful violations, individuals can face significant prison sentences (e.g., up to 20 years) and substantial fines (e.g., up to $1 million), while corporations can face multi-million dollar fines.
Reputational Damage: Significant negative impact on a company's reputation and ability to operate globally.
EU Penalties: Vary by member state, but generally include substantial fines and potential imprisonment for individuals.
UN Penalties: While the UN itself doesn't impose penalties directly on individuals/entities, member states are obligated to implement the sanctions into their national law and enforce them, leading to national penalties.
Ley Contra el Lavado de Dinero y de Activos (LCLDA)
Example (search for updated versions): A general search for "Ley Contra el Lavado de Dinero y de Activos El Salvador" will yield many legal aggregator sites. It's crucial for legal professionals to consult the most current version.
This law, and its implementing regulations (Normas Técnicas), mandate financial institutions (which VASPs are increasingly considered) to implement AML/CFT measures, including due diligence and reporting suspicious transactions. Failure to comply can lead to:
Administrative Fines: Imposed by the Superintendencia del Sistema Financiero (SSF) for non-compliance with regulations.
Suspension or Revocation of Licenses: For serious or repeated non-compliance.
Criminal Charges: For individuals or directors involved in money laundering, terrorist financing, or serious facilitation of such activities, which includes willful violations of sanctions. Penalties can include imprisonment.
To implement and enforce the sanctions regimes mandated by UN Security Council Resolutions, which are binding on all member states.
To adhere to the FATF Recommendations, which include implementing robust AML/CFT frameworks that require financial institutions (including VASPs) to screen against relevant sanctions lists. El Salvador is part of GAFILAT (Grupo de Acción Financiera de Latinoamérica), a FATF-style regional body.
To cooperate with international partners (like the U.S. and EU) in enforcing their respective sanctions, especially where there is a nexus (e.g., U.S. persons, U.S. dollar transactions).
Superintendencia del Sistema Financiero (SSF)
Unidad de Investigación Financiera (UIF) / Fiscalía General de la República
Part of the Fiscalia General de la República (Attorney General's Office).
Reglamento para la Aplicación de las Disposiciones de Prevención del Lavado de Dinero y Activos y Financiamiento del Terrorismo para Proveedores de Servicios de Activos Digitales (Regulation for the Application of Provisions for the Prevention of Money and Asset Laundering and Terrorism Financing for Digital Asset Service Providers). This regulation was issued by the Comisión Nacional de Activos Digitales (CNAD), El Salvador's National Commission of Digital Assets.
VASPs are required to transmit originator and beneficiary information for transactions equal to or exceeding $1,000 USD, or its equivalent in any digital asset.
Exchange between digital assets and fiat currency.
Exchange between one or more forms of digital assets.
Safeguarding and/or administration of digital assets or instruments enabling control over digital assets.
Participation in and provision of financial services related to an issuer's offer and/or sale of a digital asset.
Account number or unique transaction identifier
Physical address (or national identification number, or customer identification number, or date and place of birth, as applicable)
Ley Bitcoin (Bitcoin Law): Article 14 of the Bitcoin Law outlines sanctions for non-compliance with its provisions and related regulations. These can range from warnings to fines.
Ley Contra el Lavado de Dinero y de Activos (LCLDA)
Official Publication in Diario Oficial No. 222, Tomo No. 437, November 21, 2022.
A copy of the regulation can often be found on the CNAD's official website or legal repositories. For instance, the CNAD's site typically announces such regulations: https://cnad.gob.sv/ (Navigate to "Normativa" or "Publicaciones").
A direct link to the regulation document (PDF) is often provided by the CNAD. As of a recent check, it's typically under the "Marco Normativo" or "Regulaciones" section.
Direct PDF Link (Example, confirm current): CNAD Normativa
Diario Oficial No. 110, Tomo No. 431, June 8, 2021.
Often available on the official legislative website of El Salvador or via legal databases.
Unofficial English translation available on many crypto news sites.
Diario Oficial No. 228, Tomo No. 373, December 10, 2006 (with subsequent reforms).
Accessible via the official legislative website of El Salvador.
Travel Rule
Travel rule data collection in progress.
Tax Reporting
For both individuals and businesses, transactions involving Bitcoin as legal tender are generally exempt from capital gains tax. This means if you buy, sell, or exchange Bitcoin, or use it to purchase goods and services, you typically will not incur capital gains tax on the appreciation of the Bitcoin itself. This exemption is a significant part of El Salvador's strategy to attract Bitcoin investment and usage.
This exemption is largely understood to apply to the appreciation of Bitcoin when held and transacted as a currency.
For virtual assets other than Bitcoin, the situation is less clear-cut and generally reverts to standard tax principles. If these are considered "movable assets" or "financial instruments," then their sale would likely be subject to El Salvador's general capital gains tax.
General Capital Gains Tax Rate: El Salvador applies a 10% capital gains tax on the sale of movable and immovable property (excluding certain specified assets). It is highly probable that profits from trading cryptocurrencies other than Bitcoin would fall under this 10% rate if they are considered assets.
If an individual receives wages or a salary in Bitcoin, that income is treated like any other income and is subject to standard Income Tax (Impuesto sobre la Renta) rates. The medium of payment (Bitcoin vs. USD) does not change the nature of the income.
For businesses, revenue generated and received in Bitcoin is treated as normal business income and is subject to the corporate income tax rate.
Individual Income Tax Rates: El Salvador has progressive income tax rates, generally ranging from 0% to 30%.
Corporate Income Tax Rate: The standard corporate income tax rate is 30%.
Income generated from activities like professional crypto mining, staking rewards, lending protocols, or active trading of cryptocurrencies (especially those other than Bitcoin) would generally be considered business income or professional income.
This income would be subject to the standard individual or corporate income tax rates (up to 30%), depending on whether the activity is conducted by an individual as a profession or through a registered business entity.
Transactions involving Bitcoin itself (e.g., buying Bitcoin) are not subject to Value Added Tax (IVA - Impuesto a la Transferencia de Bienes Muebles y a la Prestación de Servicios). Bitcoin, being a currency, is not considered a taxable good or service.
However, the goods or services purchased with Bitcoin are subject to IVA at the standard rate, just as if they were purchased with USD. For example, if you buy a coffee with Bitcoin, the coffee itself is subject to 13% IVA.
Any fees charged by service providers (e.g., Chivo Wallet, other exchanges) for facilitating Bitcoin transactions (like conversion fees or transaction fees) would likely be subject to IVA if those services are performed within El Salvador.
Similar to Bitcoin, the mere transfer or exchange of other cryptocurrencies is generally not subject to IVA.
However, any services associated with these cryptocurrencies (e.g., exchange fees, platform fees) would typically be subject to IVA at the standard 13% rate if the service is rendered in El Salvador.
General Principle: While Bitcoin transactions might be tax-exempt for capital gains, all economic activities must still be accounted for for general tax and regulatory purposes.
Businesses accepting Bitcoin must record all sales and revenue in their accounting books, generally converted to USD equivalent at the time of the transaction for reporting purposes to the tax authority.
They are required to issue invoices for goods and services sold, regardless of the payment method.
Standard corporate tax returns (Impuesto sobre la Renta and IVA) must be filed, declaring all income and expenses.
For casual use of Bitcoin to purchase goods/services, specific tax reporting beyond what's required for general consumption (like sales receipts) is not typically mandated.
For individuals deriving income from crypto-related activities (e.g., mining, staking, professional trading), this income must be declared in their annual income tax returns.
Anti-Money Laundering (AML) / Know Your Customer (KYC): Regulated entities like the Chivo Wallet or licensed crypto exchanges are subject to AML/KYC regulations. This means users will have to provide identification, and large transactions might be reported to financial intelligence units, although this is distinct from direct tax reporting to the DGII.
The Bitcoin Law itself: Its declaration of Bitcoin as legal tender implicitly guides the tax exemption for its use as currency.
Clarifications and interpretations: Statements from government officials and the Ministry of Finance have further clarified the capital gains exemption for Bitcoin.
Existing tax laws: El Salvador's general tax code, income tax law, and VAT law are applied to other cryptocurrencies and income-generating crypto activities.
This is the foundational law. It was published in the Official Gazette.
Official Gazette (Diario Oficial) - Decree No. 57 (Ley Bitcoin):
You'll often find references to this law on legal databases or news archives. A direct, stable government link to the exact decree might be in Spanish and within the archives of the Official Gazette.
General search for the law: Diario Oficial Ley Bitcoin El Salvador
(Note: A direct, easily accessible PDF from an official government source specific to the Bitcoin Law might require navigating the Diario Oficial archives.) Many legal news sites or organizations provide the text. For instance, see a transcription on a legal portal: Ley Bitcoin (El Salvador) (This link points to a PDF on the Salvadoran Legislative Assembly's site, which is a good primary source for the law itself).
This is El Salvador's primary tax authority. While specific crypto guidance may not be prominently featured, their portal contains the general tax laws.
Website: https://www.mh.gob.sv/pmh/es/Direcciones/DGII (This is the section of the Ministry of Finance dedicated to the DGII)
Código Tributario (Tax Code), Ley de Impuesto sobre la Renta (Income Tax Law), Ley del Impuesto a la Transferencia de Bienes Muebles y a la Prestación de Servicios (IVA Law):
These are the general tax laws that apply by default to economic activities, including those involving cryptocurrencies other than Bitcoin, or income/VAT aspects of Bitcoin transactions.
These laws are typically found in the "Leyes y Normas" (Laws and Regulations) section of the Ministry of Finance website or the Legislative Assembly website.
Ministry of Finance (Ministerio de Hacienda) - Laws section: https://www.mh.gob.sv/pmh/es/Leyes+y+Normas/
You would need to navigate this section to find the specific laws mentioned. They are usually organized by topic or date.
Custody Requirements
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Stablecoin Regulation
Reference: Decreto Legislativo No. 57 de la Ley Bitcoin, publicado en el Diario Oficial No. 119, Tomo No. 432 del 8 de junio de 2021.
Relevance to Stablecoins: While it made Bitcoin legal tender, it does not classify or regulate other cryptocurrencies or stablecoins. Its scope is exclusively Bitcoin. Other digital assets are not considered legal tender under this law.
Ley de Emisión de Activos Digitales (Digital Assets Issuance Law - DAIL):
Reference: Decreto Legislativo No. 49 de la Ley de Emisión de Activos Digitales, publicado en el Diario Oficial No. 16, Tomo No. 438 del 16 de enero de 2023.
Relevance to Stablecoins: This is the primary legislation governing the issuance and offering of all digital assets, including stablecoins (if they are issued or offered within El Salvador). It defines the regulatory categories and requirements.
Role: Established by the DAIL, CNAD is the sole regulatory and supervisory body for the issuance of digital assets and digital asset service providers in El Salvador. It is responsible for authorizing, regulating, and overseeing all activities related to digital asset issuance and services.
Digital Assets (Activos Digitales): Article 2 of the DAIL broadly defines "Digital Assets" as "representations of rights or values, which are created, stored, and transferred through Distributed Ledger Technology (DLT) or similar technologies."
Digital Asset Securities (Activos Digitales Valores): The law distinguishes between general "Digital Assets" and "Digital Asset Securities" (Title III, Chapter I). A stablecoin could be considered a "Digital Asset." However, if a stablecoin's structure grants rights resembling traditional securities (e.g., fractional ownership in a pool of assets, voting rights, or a claim on future profits from the issuer), it could potentially be classified as a "Digital Asset Security" and thus be subject to stricter rules typically applied to financial securities, including potential registration with CNAD as such. Most stablecoins are designed to avoid this classification.
E-money/Payment Tokens: The DAIL does not explicitly create distinct regulatory categories for "e-money" or "payment tokens" for stablecoins. Instead, it regulates the issuance and offering of any digital asset, and stablecoins would fall under the general "Digital Assets" category, with specific requirements detailed below.
Disclosure and Backing: Articles 28, 29, and 30 of the DAIL require issuers to provide comprehensive information in their whitepaper about the digital asset, including a clear description of its underlying assets, its value, and how that value is maintained.
Existence and Accessibility: The law mandates that issuers must ensure the existence and accessibility of the underlying assets that back the digital asset. For a stablecoin, this means the reserves (e.g., fiat currency, government bonds) must verifiably exist and be held in a manner that allows their redemption or backing of the stablecoin.
Audits and Reports: CNAD has the authority to request regular reports, audits, and information from issuers to verify compliance with these backing requirements (Article 7).
Mandatory Registration: Any entity intending to issue a digital asset in El Salvador (including stablecoins) or provide digital asset services (e.g., trading platforms, custodians) must obtain prior authorization and registration from the CNAD (Chapter IV of DAIL, particularly Article 22).
Authorization Process: The process involves submitting a detailed application, including the whitepaper, legal structure, financial statements, and information about the underlying assets and technology (Articles 25-29).
Compliance: Issuers must comply with anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations, as well as data protection laws.
Underlying Asset Accessibility: The law's strong emphasis on the existence and accessibility of underlying assets (Articles 28, 29, 30) for any issued digital asset implies that holders should have a clear mechanism to access the value those assets represent.
Whitepaper Details: Issuers are required to clearly outline the rights and obligations of digital asset holders, including how the underlying assets can be accessed or converted (Article 28). Any claims made about the stablecoin's peg and its redeemability must be clearly articulated and demonstrably verifiable.
Emphasis on Underlying Assets: The law consistently refers to the need for digital assets to have "underlying assets" (Art. 28, 29, 30) and for these to be clearly described, verifiable, and accessible.
Difficulty for Algorithmic Models: Algorithmic stablecoins, which rely on smart contracts and market mechanisms rather than a direct reserve of fiat or other stable assets, would struggle to meet the DAIL's requirements for demonstrating the "existence and accessibility of underlying assets" in a conventional sense. The focus on tangible backing suggests that such models might not be compatible with the current regulatory approach.
Focus on Bitcoin and USD: The country's monetary policy is centered around its dual legal tender system: the US Dollar as its primary fiat currency and Bitcoin as a parallel legal tender.
No Legislative Framework: There is no specific legislation or regulatory sandbox established for a potential CBDC. Therefore, there is currently no interaction between stablecoin regulation and a CBDC in El Salvador.
Securities Classification
Bitcoin and digital assets are legal in El Salvador, with the country publicly embracing cryptocurrency as part of its investment promotion strategy El Salvador - United States Department of State
The primary regulatory authority for digital assets is the Comisión Nacional de Activos Digitales (CNAD), which oversees the issuance and public offering of digital assets under the Digital Assets Issuance Law Digital Assets - CNAD
A licensing regime exists for digital asset service providers, requiring authorization from the CNAD to operate in El Salvador, though the framework is still in its early implementation stages Digital Assets - CNAD
The regulatory framework is considered "favorable" and includes tax incentives designed to attract international cryptocurrency firms to relocate to El Salvador El Salvador - United States Department of State
International cryptocurrency firms have announced plans to relocate to El Salvador, indicating the practical viability of the regulatory regime, though specific licensed entities must be verified with the CNAD directly El Salvador - United States Department of State
Comisión Nacional de Activos Digitales (CNAD) is the central regulatory authority for digital assets in El Salvador, serving as the national digital asset commission Digital Assets - CNAD
The CNAD is responsible for authorizing public offerings of digital assets and registering digital asset service providers Digital Assets - CNAD
The Investment and Export Promotion Agency (INVEST) is the government entity that supports investment in the "Bitcoin and digital assets" sector, one of eight priority investment sectors identified by the government El Salvador - United States Department of State
The Central Bank of El Salvador monitors and reports on foreign direct investment flows, including data relevant to the digital asset sector El Salvador - United States Department of State
The Digital Assets Issuance Law (Ley de Emisión de Activos Digitales) is the foundational legislation governing digital asset securities and public offerings in El Salvador, administered by the CNAD Digital Assets - CNAD
The Digital Assets Issuance Law provides the legal framework for the CNAD to authorize public offerings of digital assets and to register digital asset service providers Digital Assets - CNAD
The law applies to virtual assets, cryptocurrencies, and digital asset securities issued or offered in El Salvador, with the CNAD acting as the competent authority Digital Assets - CNAD
The Investments Law grants equal treatment to foreign and domestic investors, which applies to digital asset businesses as it does to all other investment sectors El Salvador - United States Department of State
The Simplified Administrative Procedures Law requires government entities to perform a Regulatory Impact Analysis (RIA) and provide a 15-day public comment period before adopting or amending regulations, including those for digital assets El Salvador - United States Department of State
El Salvador has been a World Trade Organization (WTO) member since 1995, with its latest trade policy review completed on April 20, 2023 El Salvador - United States Department of State
The OECD completed a Multi-Dimensional Review of El Salvador on April 18, 2023, and ranked El Salvador in the top 10 leading reformers in Latin America in trade facilitation El Salvador - United States Department of State
El Salvador entered into a $1.4 billion economic reform program with the International Monetary Fund (IMF) in February 2025, which includes commitments to reform implementation that could affect the digital asset regulatory landscape El Salvador - United States Department of State
El Salvador is a signatory of the WTO Investment Facilitation for Development Agreement El Salvador - United States Department of State
El Salvador has 16 bilateral investment treaties in force and is one of five Central American Common Market countries with a multilateral investment treaty El Salvador - United States Department of State
Digital asset issuers seeking to conduct public offerings of digital assets in El Salvador must obtain prior authorization from the CNAD under the Digital Assets Issuance Law Digital Assets - CNAD
Digital asset service providers (including exchanges, wallets, and other intermediary services) must be registered with the CNAD as a condition of operating in El Salvador Digital Assets - CNAD
Any entity engaged in the public offering of digital asset securities must apply for and receive authorization from the CNAD before commencing operations Digital Assets - CNAD
The CNAD's authorization requirement applies to both domestic and foreign entities seeking to conduct digital asset-related activities within El Salvador's jurisdiction Digital Assets - CNAD
Public offerings of digital assets, including digital asset securities, require CNAD authorization Digital Assets - CNAD
The operation of digital asset service platforms and intermediaries requires registration with the CNAD Digital Assets - CNAD
The issuance of digital assets to the public in El Salvador falls under the regulatory scope of the CNAD Digital Assets - CNAD
Digital asset exchanges and trading platforms operating in El Salvador are subject to CNAD registration requirements Digital Assets - CNAD
The Digital Assets Issuance Law provides for the CNAD to establish requirements for digital asset issuers and service providers, though specific capital thresholds are not publicly detailed in the available documentation Digital Assets - CNAD
For investors establishing new businesses in El Salvador, foreign investors may freely establish any type of domestic business, subject only to limitations imposed on micro businesses defined as having 10 or fewer employees and yearly sales of $175,930 or less El Salvador - United States Department of State
Simplified joint-stock companies (SAS) can be registered with no cost and a minimum capital requirement of only one dollar El Salvador - United States Department of State
Entities seeking CNAD authorization must submit an application demonstrating compliance with the Digital Assets Issuance Law and the CNAD's regulatory requirements Digital Assets - CNAD
Business registration in El Salvador can be completed within three days through the online Miempresa portal, which allows new businesses to formalize registration and conduct administrative operations online El Salvador - United States Department of State
The CNAD reviews digital asset applications in accordance with the Digital Assets Issuance Law, with specific timelines dependent on the complexity of the proposed offering Digital Assets - CNAD
The regulatory framework is still developing, with the CNAD continuing to implement its authorization and registration procedures Digital Assets - CNAD
Issuers must operate through a legal entity established in El Salvador or authorized to do business in the country Digital Assets - CNAD
Compliance with the CNAD's white paper and disclosure requirements is mandatory for public offerings of digital assets Digital Assets - CNAD
Digital asset service providers must maintain internal controls and procedures consistent with CNAD requirements Digital Assets - CNAD
The Investment and Export Promotion Agency (INVEST) supports investors in the Bitcoin and digital assets sector by providing information about applicable laws, regulations, and procedures El Salvador - United States Department of State
No specific names of licensed digital asset entities are publicly confirmed in the available sources. The CNAD's framework is designed to authorize qualifying digital asset issuers and service providers, and international cryptocurrency firms have announced plans to relocate to El Salvador, but no specific licensed entities are named in the provided documentation El Salvador - United States Department of State
The government has publicly embraced cryptocurrency and created favorable regulations and tax incentives to attract digital asset businesses, suggesting the licensing framework is operational El Salvador - United States Department of State
The regulatory framework for digital assets in El Salvador, administered by the CNAD, includes anti-money laundering and counter-terrorism financing requirements applicable to digital asset issuers and service providers Digital Assets - CNAD
Digital Asset Service Providers must be duly registered and authorized to operate in El Salvador and in their country of incorporation, which includes compliance with applicable AML regulations Digital Assets - CNAD
The Digital Assets Issuance Law requires issuers to meet transparency and disclosure standards as a condition of CNAD authorization, which encompasses compliance with AML/KYC obligations Digital Assets - CNAD
These requirements apply in addition to El Salvador's general AML framework, which was implemented through the country's regulatory agencies and institutions El Salvador - United States Department of State
Companies operating in El Salvador note that regulatory agencies are often understaffed and inexperienced in dealing with complex issues, which may affect the practical enforcement of AML/KYC requirements in the digital asset sector El Salvador - United States Department of State
No specific enforcement actions against digital asset entities in El Salvador are documented in the provided sources.
El Salvador's regulatory enforcement capacity for digital assets is still developing, with the CNAD in the process of implementing its oversight framework Digital Assets - CNAD
The 2024 repeal of the 2017 ban on metal mining and the passage of the General Law on Metallic Mining demonstrates the government's willingness to change regulatory frameworks through legislative action, though this pertains to mining rather than digital assets El Salvador - United States Department of State
The Court of Accounts (CCR) audits financial statements and budget execution of all ministries and agencies, including potentially those involved in digital asset regulation, but did not publish any audit results in 2024 El Salvador - United States Department of State
El Salvador offers tax incentives as part of its strategy to attract international cryptocurrency firms and digital asset businesses to relocate to the country El Salvador - United States Department of State
The government's favorable tax treatment of cryptocurrency is one of three key factors—along with public embrace of cryptocurrency and favorable regulations—that have led international cryptocurrency firms to announce plans to relocate to El Salvador El Salvador - United States Department of State
El Salvador uses the U.S. dollar as legal tender, which provides a stable currency environment for digital asset transactions and tax calculations El Salvador - United States Department of State
Detailed tax guidance specific to digital assets and cryptocurrency transactions is not publicly detailed in the available sources; however, the government has explicitly promoted tax incentives as a tool to attract digital asset businesses El Salvador - United States Department of State
El Salvador does not have a bilateral taxation treaty with the United States, which can affect cross-border digital asset transactions between the two countries El Salvador - United States Department of State
Regulatory implementation gaps: The regulatory agencies in El Salvador are often understaffed and inexperienced in dealing with complex issues, which can affect the consistent enforcement and practical application of digital asset regulations El Salvador - United States Department of State
Lack of published regulations: The government does not use a centralized online portal to publish regulatory actions, and the Legislative Assembly is not required to publish draft legislation or solicit comments on pending legislation, creating transparency challenges for digital asset businesses El Salvador - United States Department of State
Discretionary application of rules: The discretionary application of rules can complicate routine transactions, including those in the digital asset sector, with companies noting that laws and regulations have been enacted without adhering to established notice and comment procedures El Salvador - United States Department of State
Financial stability concerns: The $1.4 billion IMF program includes commitments to meet agreed metrics and milestones, and failure to do so "could weigh on economic sentiment," creating financial stability risks for digital asset businesses operating in El Salvador El Salvador - United States Department of State
IMF program compliance risk: Success of the 40-month IMF economic reform program depends on implementation of reforms, and the digital asset sector may face regulatory adjustments as El Salvador works to satisfy IMF commitments El Salvador - United States Department of State
Due diligence burdens: Digital Asset Service Providers must demonstrate they are duly registered and authorized to operate in their country of incorporation, which creates additional regulatory burdens for international firms seeking to enter El Salvador Digital Assets - CNAD
Security and infrastructure concerns: Weak cybersecurity and digital infrastructure in El Salvador present operational risks for digital asset platforms El Salvador - United States Department of State
Informal economy: The informal sector makes up an estimated 70 percent of El Salvador's economy, which could create challenges for digital asset businesses seeking to engage with the broader market El Salvador - United States Department of State
Uncertainty regarding licensing implementation: The CNAD's digital asset framework is developing, and the practical implementation of licensing and registration requirements is still being refined, creating uncertainty for market participants Digital Assets - CNAD
Government accountability gaps: The Court of Accounts did not publish any audit results in 2024, and government accountability remains insufficient, creating broader governance risks for businesses operating in El Salvador El Salvador - United States Department of State
No bilateral tax treaty with the United States: The absence of a taxation treaty between El Salvador and the United States complicates cross-border digital asset transactions and may impact investment structures El Salvador - United States Department of State
El Salvador - United States Department of State
MEMORANDUM To: Crypto Task Force Meeting Log From: Crypto Task Force Staff
Sanctions & Restrictions
Sanctions data collection in progress.
Enforcement Actions
Role: Created by the Digital Assets Issuance Law (Ley de Emisión de Activos Digitales), enacted in January 2023. CNAD is the primary regulator for the issuance, offering, and trading of digital assets (excluding Bitcoin, which is governed by the Bitcoin Law as legal tender). It grants licenses to Digital Asset Service Providers (DASPs).
Enforcement Focus: Primarily focused on ensuring compliance with the Digital Assets Issuance Law, licensing requirements, and investor protection for new issuances and service providers. Non-compliance with these new laws would likely be the basis for future enforcement.
Role: Regulates traditional financial institutions. While Bitcoin is legal tender, the SSF's direct oversight of crypto firms is limited unless they are also traditional financial entities or deal with fiat in specific regulated ways. It ensures financial stability and consumer protection within the traditional system.
Role: Oversees monetary policy, financial stability, and payment systems. While Bitcoin is legal tender, the BCR does not directly regulate crypto firms but rather manages the implications of Bitcoin adoption on the broader economy.
Role: Handles criminal investigations, including fraud, money laundering, and other illicit activities that might involve cryptocurrencies. Any criminal misuse of crypto would fall under their jurisdiction.
Pro-Bitcoin Stance: El Salvador's government has been a proponent of Bitcoin adoption, aiming to attract investment and innovation in the crypto space. This has meant less of a "crackdown" mentality and more of a "build the framework" approach.
New Laws, New Regulation: The most significant development is the creation of the Digital Assets Issuance Law and the CNAD in early 2023. This law establishes licensing requirements for digital asset service providers. Enforcement will primarily occur as the CNAD begins to fully implement its mandate, licenses entities, and addresses non-compliance with these new rules.
Focus on State-Sponsored Initiatives: Much of the scrutiny and "enforcement" (in terms of ensuring compliance or addressing issues) has internally revolved around state-sponsored initiatives like the Chivo Wallet and the Volcano Bonds. These are not "enforcement actions" against private entities, but rather regulatory/operational challenges for the state itself.
Regulator: Government of El Salvador (operating the Chivo wallet, thus acting as an internal regulator/oversight body).
Entity Targeted: The Chivo Wallet system itself (state-owned). Violation Type: User complaints regarding fraud, identity theft, unauthorized transactions, and technical glitches related to the initial rollout and subsequent operation of the Chivo wallet. These were widely reported, especially in 2021-2022. While not an enforcement action against a private company, the government had to address these issues, which led to system improvements and enhanced security measures. Penalty Amount: N/A (Internal operational costs, reputation damage, potentially user reimbursements).
Date: Ongoing since the September 2021 launch, particularly prominent in late 2021 and early 2022.
Outcome: The government implemented fixes, offered customer support, and improved security. This highlights a self-correction mechanism rather than external regulatory enforcement.
Reuters on Chivo Glitches: https://www.reuters.com/markets/currencies/salvadorans-complain-bitcoin-app-faults-after-adoption-2021-09-08/
Human Rights Foundation on Chivo issues: https://hrf.org/the-many-problems-of-el-salvadors-bitcoin-experiment/
Digital Assets Issuance Law & CNAD Licensing:
Regulator: Comisión Nacional de Activos Digitales (CNAD).
Entity Targeted: Digital Asset Service Providers (DASPs) operating or wishing to operate in El Salvador. Violation Type: Non-compliance with licensing requirements, investor protection rules, and other provisions of the Digital Assets Issuance Law. Penalty Amount: Not yet publicly reported for specific cases, but the law provides for fines, suspension, or revocation of licenses.
Date: Law enacted January 2023, CNAD operational since then. Future enforcement actions will stem from this.
Outcome: The CNAD is now the authority for licensing and supervising new digital asset issuances and providers. Any "enforcement" in the future will likely be against entities that fail to secure or maintain these licenses, or violate investor protection rules.
Official CNAD Website: https://cnad.gob.sv/ (Spanish)
Digital Assets Issuance Law (Ley de Emisión de Activos Digitales) - PDF available via government sites (e.g., Asamblea Legislativa): https://www.asamblea.gob.sv/sites/default/files/documents/decretos/1673898622_DECRETO%20572.pdf
Regulator: International Monetary Fund (IMF) – not an El Salvadoran regulator, but provides international pressure.
Entity Targeted: Government of El Salvador (for its overall regulatory framework). Violation Type: Concerns about potential risks to financial integrity and stability, particularly regarding anti-money laundering (AML) and combating the financing of terrorism (CFT) due to the widespread adoption of Bitcoin without a fully mature regulatory framework. Penalty Amount: N/A (Reputational and potential impact on access to international financing).
Outcome: El Salvador has responded by strengthening its legal framework (e.g., the Digital Assets Issuance Law includes AML/CFT provisions) to address these concerns, aiming to comply with international standards.
IMF urges El Salvador to remove Bitcoin's legal tender status: https://www.imf.org/en/News/Articles/2022/01/25/pr2215-el-salvador-imf-executive-board-concludes-2021-article-iv-consultation
Research & Articles
Regulatory Forecast
high confidenceLikely enforcement action expected around 2026-12-04
Based on 85 historical regulatory events for El Salvador, averaging every 86 days, with increasing regulatory activity.
Recent Updates
Banco Central de Reserva (BCR)
Banco Central de Reserva (BCR)
Ley Bitcoin (Bitcoin Law) - Enacted September 7, 2021:
Ley Bitcoin (Bitcoin Law) - Enacted September 7, 2021:
Ley de Emisión de Activos Digitales (Digital Assets Issuance Law) - Enacted January 10, 2023:
Ley de Emisión de Activos Digitales (Digital Assets Issuance Law) - Enacted January 10, 2023:
Details: The specific amounts, types of guarantees, and conditions for these insurance or guarantee funds are exp...
Details: The specific amounts, types of guarantees, and conditions for these insurance or guarantee funds are expected to be elaborated in subsequent technical norms (Normas Técnicas) issued by the CNAD.
Risk-Based Approach: Assessing the specific sanctions risks associated with their customer base, products, servic...
Risk-Based Approach: Assessing the specific sanctions risks associated with their customer base, products, services, geographic locations, and transaction types.
Transaction Monitoring: Implementing systems to detect suspicious patterns or red flags that may indicate sanctio...
Transaction Monitoring: Implementing systems to detect suspicious patterns or red flags that may indicate sanctions evasion.
Reporting: Freezing funds and assets of sanctioned individuals/entities and reporting blocked transactions and su...
Reporting: Freezing funds and assets of sanctioned individuals/entities and reporting blocked transactions and suspicious activities to the relevant authorities (e.g., El Salvador's Financial Intelligence Unit – FIU, known as Unidad de Investigación Financiera - UIF).
OFAC Sanctions Compliance Guidance for the Virtual Currency Industry: Emphasizes that U.S. sanctions apply to vir...
OFAC Sanctions Compliance Guidance for the Virtual Currency Industry: Emphasizes that U.S. sanctions apply to virtual currency activities in the same manner as they apply to traditional financial activities. It details expectations for compliance programs, including sanctions screening, risk assessment, and reporting.
OFAC's Consolidated Sanctions List: Includes the SDN List and other non-SDN lists (e.g., Sectoral Sanctions Ident...
OFAC's Consolidated Sanctions List: Includes the SDN List and other non-SDN lists (e.g., Sectoral Sanctions Identifications List).
UN Security Council Consolidated List: Includes individuals and entities associated with Al-Qaida, ISIL (Da'esh),...
UN Security Council Consolidated List: Includes individuals and entities associated with Al-Qaida, ISIL (Da'esh), and the Taliban, as well as those subject to other UN sanctions regimes.
EU Penalties: Vary by member state, but generally include substantial fines and potential imprisonment for indivi...
EU Penalties: Vary by member state, but generally include substantial fines and potential imprisonment for individuals.
UN Penalties: While the UN itself doesn't impose penalties directly on individuals/entities, member states are ob...
UN Penalties: While the UN itself doesn't impose penalties directly on individuals/entities, member states are obligated to implement the sanctions into their national law and enforce them, leading to national penalties.
Superintendencia del Sistema Financiero (SSF): The primary financial regulator responsible for overseeing banks a...
Superintendencia del Sistema Financiero (SSF): The primary financial regulator responsible for overseeing banks and other financial institutions. They are developing and enforcing specific regulations for VASPs under the broader AML/CFT framework.
Tokens Used for Fundraising with Profit Expectation: Any digital asset issued explicitly to raise capital for a p...
Tokens Used for Fundraising with Profit Expectation: Any digital asset issued explicitly to raise capital for a project with the promise of future financial returns to investors.
No Broad Exemptions for Issuance: The law emphasizes authorization for all issuances of Digital Asset Securitie...
No Broad Exemptions for Issuance: The law emphasizes authorization for all issuances of Digital Asset Securities, meaning there are no broad exemptions akin to Regulation D in the U.S. for private placements. However, the CNAD has the authority to issue secondary regulations that could define specific types of offerings or issuers that might qualify for simplified procedures or exemptions in the future.
Volcano Bonds: These multi-million dollar Bitcoin-backed bonds were designed to be issued as Digital Asset Securi...
Volcano Bonds: These multi-million dollar Bitcoin-backed bonds were designed to be issued as Digital Asset Securities. Their structure, issuance process, and eventual approval by the CNAD demonstrate that the regulatory framework is operational and capable of facilitating the issuance of complex digital asset securities under its rules. The CNAD reviewed their whitepaper, legal structure, and compliance details before granting authorization. This serves as a significant positive example of the law being applied to a major issuance.
Digital Assets (Activos Digitales): Article 2 of the DAIL broadly defines "Digital Assets" as "representations of...
Digital Assets (Activos Digitales): Article 2 of the DAIL broadly defines "Digital Assets" as "representations of rights or values, which are created, stored, and transferred through Distributed Ledger Technology (DLT) or similar technologies."
Underlying Asset Accessibility: The law's strong emphasis on the *existence and accessibility of underlying asset...
Underlying Asset Accessibility: The law's strong emphasis on the existence and accessibility of underlying assets (Articles 28, 29, 30) for any issued digital asset implies that holders should have a clear mechanism to access the value those assets represent.
Reglamento para la Aplicación de las Disposiciones de Prevención del Lavado de Dinero y Activos y Financiamiento de...
Reglamento para la Aplicación de las Disposiciones de Prevención del Lavado de Dinero y Activos y Financiamiento del Terrorismo para Proveedores de Servicios de Activos Digitales (Regulation for the Application of Provisions for the Prevention of Money and Asset Laundering and Terrorism Financing for Digital Asset Service Providers). This regulation was issued by the Comisión Nacional de Activos Digitales (CNAD), El Salvador's National Commission of Digital Assets.
Ley Bitcoin (Bitcoin Law): Article 14 of the Bitcoin Law outlines sanctions for non-compliance with its provision...
Ley Bitcoin (Bitcoin Law): Article 14 of the Bitcoin Law outlines sanctions for non-compliance with its provisions and related regulations. These can range from warnings to fines.
Ley Contra el Lavado de Dinero y de Activos (Anti-Money Laundering and Asset Law): This overarching AML/CFT law i...
Ley Contra el Lavado de Dinero y de Activos (Anti-Money Laundering and Asset Law): This overarching AML/CFT law in El Salvador also provides for sanctions for financial institutions and designated non-financial businesses and professions (DNFBPs) that fail to comply with their AML/CFT obligations. Penalties can include substantial fines, suspension or revocation of licenses, and even criminal prosecution for severe violations.
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