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El Salvador adopted Bitcoin as legal tender in 2021. The Bitcoin Law is relatively simple, establishing Bitcoin as an official currency. However, additional regulations introduce specific requirements for companies offering Bitcoin-related services.
Requirements for Bitcoin Service Companies in El Salvador
Companies providing Bitcoin-related services, such as crypto exchanges, trading platforms, e-wallet services, and Bitcoin ATMs, must register with the Central Reserve Bank (BCR) before starting operations. While the registration process is straightforward, there are several key aspects to consider:
1- Company Registration Process in El Salvador
Registering with the Central Reserve Bank (BCR) is a simple process. There are no special requirements prior to forming a company that will provide Bitcoin services in El Salvador.
2- Technical Contact Requirement
Companies must designate a technical contact person who resides permanently in El Salvador.
Financial Supervision by the Superintendency of the Financial System
Once registered with the Central Reserve Bank, companies are regulated and supervised by the Superintendency of the Financial System. This involves:
Compliance with Anti-Money Laundering (AML) Laws:
Companies must appoint a compliance officer and an alternate, both certified in AML regulations.
UIF Regulatory Requirements
Companies must comply with all regulations set by the Financial Investigation Unit (UIF), including anti-money laundering policies and an annual compliance training and work plan.
Regulation of Other Cryptocurrencies in El Salvador
Since 2023, the National Commission for Digital Assets has been established. This entity regulates and supervises companies that provide crypto-related services for digital assets other than Bitcoin.
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Ensuring full regulatory compliance is crucial for legally operating as a Bitcoin service provider in El Salvador.
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