El Salvador

Legal

Digital Asset / Bitcoin · Bespoke

ExchangesIssuersCustodiansDigital Asset Service Providers

Comprehensive framework Approved · 2023 CASP / VASP regime Approved · 2023 Licensing Approved · 2023 AML / CFT Approved · 2023 Stablecoins Unregulated · Unregulated CBDC N/A Consumer protection Approved · 2023 Travel rule Partial Advertising rules No Taxation Not taxed

Summary

El Salvador adopted Bitcoin as legal tender via the Bitcoin Law (Decreto 57, effective September 2021), then passed the Digital Assets Issuance Law (LEAD) in January 2023, creating the National Digital Assets Commission (CNAD) as regulator and a licensing regime for Digital Asset Service Providers (DASPs) and Bitcoin Service Providers (BSPs). In January 2025, under a USD 1.4bn IMF agreement, the Legislative Assembly amended the Bitcoin Law (effective May 2025) to make private-sector acceptance voluntary, eliminate Bitcoin's characterization as currency, and remove the obligation to accept it - ending the de facto legal-tender mandate while keeping Bitcoin lawful. Capital gains on digital assets remain tax-exempt.

Timeline

Sept 2021: Bitcoin Law makes BTC legal tender. Jan 2023: Digital Assets Issuance Law (LEAD) creates CNAD and DASP licensing. Oct 2024: reform expanding CNAD powers. Jan 2025: Bitcoin Law amended under IMF deal making acceptance voluntary; changes effective ~May 2025.