COREDO > Cryptocurrency Licence in El Salvador

Cryptocurrency Licence in El Salvador

El Salvador is one of the world’s most progressive jurisdictions for businesses working with digital assets and cryptocurrencies. The country offers modern regulation, a DASP licence for digital asset activities, and a favourable tax regime for crypto projects.

Since 2016, COREDO has been assisting clients with obtaining DASP licences in El Salvador, providing full support — from company registration to regulator communication and bank account opening.

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Cost of the service
from 16 000 EUR

Regulatory Framework

The legal landscape for cryptocurrency business in El Salvador is shaped by several key legislative acts. The Bitcoin Law (Decreto N° 57, 2021) recognised Bitcoin as legal tender, while the Digital Assets Issuance Law (LEAD, 2023) created an all-encompassing regulatory framework for all types of digital assets, including tokens, stablecoins, NFTs, and decentralised financial instruments.

LEAD mandates licensing for digital asset service providers (DASP) and defines the requirements for their operations. The law complies with FATF recommendations regarding anti-money laundering (AML) and customer identification (KYC).

In January 2025, as part of an agreement with the International Monetary Fund (IMF) worth USD 1.4 billion, amendments were introduced to the Bitcoin Law: acceptance of Bitcoin became voluntary for commercial entities, and taxes and government fees may only be paid in US dollars. At the same time, the tax benefits for licensed DASP providers remained unchanged.

The LEAD reforms adopted in 2024 expanded the powers of CNAD, making the commission the sole authority responsible for regulating the entire digital assets industry, including tokens and stablecoins. A risk-based supervision model was introduced, along with new obligations for the protection of user rights.

Types of Cryptocurrency Licences

El Salvador’s regulatory system provides for two main types of licences for working with digital assets.

The Bitcoin Service Provider (BSP) licence

is designed for companies providing services exclusively with Bitcoin: exchange, custody, transfers, and payment operations. BSP providers are required to develop AML programmes in accordance with FATF standards.

The Digital Asset Service Provider (DASP) licence

covers a broader range of operations and is the primary licence for international cryptocurrency companies. DASP licence holders may carry out the following activities: custody and management of clients’ digital assets; fiat-to-crypto, crypto-to-fiat, and crypto-to-crypto exchange; digital asset transfers between users; management of trading platforms; operations with cryptocurrency derivatives; cryptocurrency lending (secured loans, margin lending, P2P lending); issuance and circulation of security tokens.

Advantages of the Jurisdiction

El Salvador offers a number of significant advantages for cryptocurrency companies, making this jurisdiction attractive for launching and scaling a digital business.

Full tax exemption for DASP providers:

licensed companies are exempt from income tax, capital gains tax, and VAT on digital asset operations. The standard corporate tax rate in El Salvador is 30% (according to PwC Tax Summaries); however, DASP providers benefit from a special regime with a zero rate.

Minimal share capital requirements:

the minimum share capital for company registration is USD 2,000, of which only 5% (USD 100) must be paid upon registration.

No requirements for hiring local staff:

companies are free to structure their organisation and management — there is no obligation to hire local employees or establish a local management team. However, two local Compliance Officers must be appointed.

Rapidly growing regulatory ecosystem:

according to CNAD, more than 135 companies have already obtained licences to operate with digital assets, demonstrating the maturity and attractiveness of the jurisdiction.

Strategic location:

El Salvador provides access to the Latin American market and opportunities for international expansion. The DASP licence is recognised abroad, opening possibilities for operating in global markets.

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Requirements for Obtaining a DASP Licence

To successfully obtain a DASP licence, a company must meet a number of mandatory criteria established by national legislation and the supervisory practices of CNAD.

Corporate structure and operational readiness require the registration of a legal entity in El Salvador with a minimum of two shareholders (natural or legal persons). All shareholders must obtain a tax identification number (NIT) in El Salvador. The company must demonstrate operational readiness to provide digital asset services, including processes, IT systems, staff, and infrastructure.

Capital requirements include a minimum share capital of USD 2,000 with an initial contribution of at least 5% (USD 100). CNAD may require an increase in capital based on a technical analysis of the company’s planned activities.

In the area of risk management and compliance, the development and verification of an internal risk management system is required, including detailed AML procedures and information security policies. The appointment of two local Compliance Officers — a primary and an alternate — is mandatory (the company may additionally appoint its own AML officer, who is not required to be a resident of El Salvador).

Operational requirements include a description of the technological platform and IT infrastructure used for providing services, as well as maintaining an organised and functioning customer support system.

Obligations for maintaining the licence include annual renewal of registration and payment of the established fee (approximately USD 3,750) in the first half of each year. In addition, licence holders are required to appoint an external auditor, submit annual financial statements with an auditor’s report, a monthly trial balance to the Superintendency of the Financial System, and quarterly financial reports to CNAD.

Cost of COREDO Services

COREDO offers clients three service packages for obtaining a DASP cryptocurrency licence in El Salvador, which can be purchased individually or as a bundle.

Basic Package

from EUR 16,000 + VAT

Full support for company registration.
Obtaining a tax identification number (TIN) for two shareholders.
Registered office for 1 year.
Set of corporate documents in Spanish.
Standard AML/KYC policy.
Assistance in forming the share capital.
Assistance in registering a BTC licence with CNAD.
Local agent services for regulator notifications for 1 year.

Extended Package

from EUR 37,000 + VAT

All services of the Basic Package.
Personalised AML/KYC policy.
Provision of local primary and alternate Compliance Officers with an employment contract for the period of obtaining the DASP licence (4 months included).
Assistance in registering a DASP licence with CNAD.
Preparation of internal procedures (Enterprise-Wide Risk Assessment, Business Continuity Policy, InfoSec Policy, Winding Down Policy, Compliance Management Policy, Risk Management Policy, Safeguarding of Assets, Code of Ethics).
Government fee of USD 6,270.
Set of corporate documents with apostille and English translation.

Full Package

from EUR 47,500 + VAT

All services of the Extended Package.
Review of the business plan and financial plan by a lawyer.
Full AML registration with the Financial Investigation Unit (FIU).
Opening of a corporate account at a local bank.
Opening of a corporate account at a European EMI (segregated B2B/B2C accounts, multi-currency accounts).
Legalisation of the accounting system.
Initial company balance.
Issuance of corporate books by a certified auditor.

The final cost may vary depending on the specific case. The Full and Extended Packages include 250 hours of legal support; each additional hour is billed at EUR 250 + VAT.

Payment Terms

Payment for COREDO services is made in stages and depends on the selected package. For the Extended and Full Packages: the first payment (40%) is due before the start of preparatory work, the second payment (40%) — before submitting the application to CNAD, and the final payment (20%) — after receiving the regulator’s decision. For the Basic Package, the full cost of services is payable before work commences. Government duties and CNAD fees are paid separately in the established manner.

List of Documents

To register a company and submit an application for a DASP licence, the following documents must be prepared:

Notarised and apostilled copies of passports of all directors and shareholders.

Proof of residential address (for example, utility bills, no older than 3 months).

A notarised and apostilled power of attorney for a representative to carry out registration procedures.

A description of the company’s organisational structure.

A description of the business model, including a list of digital assets intended for use.

Documentation of IT infrastructure and technological platforms.

Internal policies and procedures, including AML documentation and information security policies.

A financial plan and business plan for the company.

Proof of source of funds of shareholders and beneficial owners.

Information about Compliance Officers (CV, proof of qualifications).

A draft AML/KYC policy in accordance with FATF requirements.

A description of the risk management and internal control system.

Licence Acquisition Procedure

The process of obtaining a DASP licence in El Salvador consists of several sequential stages.

Preparation and onboarding

involves the collection of information and preparation of the document package for company registration and the subsequent licence application. COREDO analyses the client’s business model, determines the optimal service package, and creates a project roadmap. Approximate timeframe: approximately 2 weeks.

01

Company registration and licensing

includes the incorporation of a legal entity in El Salvador, preparation of corporate documents, and the development and submission of the application to CNAD. The CNAD review procedure includes preliminary registration, document analysis by the commission, issuance of an “objection / no objection” conclusion, and final registration. CNAD has up to 20 business days to assess documents and render a decision. Approximate timeframe for this stage: 2.5 to 5 months.

02

Banking service integration

is carried out in parallel with the second stage. It includes the selection of banks and EMIs based on the client’s risk profile, preparation and collection of the necessary documentation, and support for the corporate account opening process through to activation.

03

The total timeframe for obtaining a DASP licence is approximately 3 to 6 months, depending on the complexity of the project and the completeness of the submitted documents.

Our Experts

COREDO specialists provide comprehensive support at all stages of obtaining a cryptocurrency licence in El Salvador. Our team includes experienced lawyers specialising in the international licensing of cryptocurrency businesses.

Pavel Kos

Head of Legal. Has been working at COREDO since 2017 and has led the legal team since 2020. Specialises in strategic planning and support of licensing projects across various jurisdictions. LinkedIn:

Basang Ungunov

Lawyer. A specialist in international private law, has been working at COREDO since 2022. Handles document preparation, legal analysis, and support for licensing procedures. LinkedIn:

Frequently Asked Questions

What is a DASP licence in El Salvador?

A Digital Asset Service Provider (DASP) licence is a permit issued by the National Digital Assets Commission (CNAD) of El Salvador that allows companies to legally provide services in the digital assets sector: exchange, custody, transfers, management of trading platforms, cryptocurrency lending, and operations with security tokens.

What is the minimum share capital required for a DASP licence?

The minimum share capital for company registration is USD 2,000, of which only 5% (USD 100) must be paid upon registration. However, CNAD may require an increase in capital based on an analysis of the company’s planned activities.

What tax benefits does El Salvador offer for DASP providers?

Licensed DASP providers are exempt from income tax, capital gains tax, and VAT on digital asset operations. This is one of the most attractive tax propositions among all jurisdictions regulating cryptocurrency business.

How long does it take to obtain a DASP licence?

The total timeframe for obtaining a licence is approximately 3 to 6 months. The preparatory stage takes about 2 weeks, while company registration and licensing takes 2.5 to 5 months. CNAD reviews the application within 20 business days of receiving the complete document package.

Is it necessary to hire local employees?

There is no general requirement to hire local employees; however, two local Compliance Officers (a primary and an alternate) must be appointed. The company may additionally appoint its own AML officer, who is not required to be a resident of El Salvador. As part of the Extended and Full Packages, COREDO provides local Compliance Officers.

Has the IMF agreement affected crypto regulation in El Salvador?

In January 2025, as part of the IMF agreement, amendments were introduced to the Bitcoin Law: acceptance of Bitcoin became voluntary for businesses. However, the tax benefits for DASP providers were not affected, and the LEAD regulatory framework remains fully operational.

What government fees does CNAD charge?

The one-time registration fee is USD 5,475 (payable in USD or Bitcoin), and the annual registration renewal fee is approximately USD 3,750. A government fee of USD 6,270 is included in the Extended and Full Packages from COREDO.

What types of activities are available under a DASP licence?

A DASP licence allows the following activities: custody and management of digital assets, fiat-to-crypto and crypto-to-crypto exchange, digital asset transfers, management of trading platforms, operations with crypto derivatives, cryptocurrency lending, and issuance of security tokens.

Contact Us

Ready to launch a cryptocurrency business in El Salvador? Contact COREDO to receive a personalised roadmap for your project. Our specialists will help you select the optimal service package, prepare all necessary documents, and guide you through the DASP licensing procedure as efficiently as possible.