Assistance in creating or purchasing a licensed crypto company in El Salvador. Register as a VASP for your cryptocurrency project, and open a bank account. Ask for a consultation today.
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The crypto license in El Salvador has been created as a consequence of the Bitcoin Law. At first, the Central Reserve Bank created the BTC Service Provider license, for all companies offering BTC-only services. Later on, the National Commission for Digital Assets (CNAD) developed a general framework named Digital Asset Services Providers (DASP, or PSAD in Spanish), under the regulatory guidance of the Digital Asset Issuance Act.
In August of 2023, the CNAD issued the reference text for getting the DASP license: Reglamento de Proveedores de Servicios de Activos Digitales (Regulation of Digital Asset Services Providers). Though licenses were available before, the regulator is working on creating clear rules for all participants, especially regarding the classification and regulation of crypto assets.
To secure a crypto license in El Salvador, a project must comply with the standard requirements such as FATF-compliant AML-KYC policies and procedures. The Digital Asset Issuance Act is a key piece of legislation that outlines the registration process for service providers, issuers, and certifying entities.
Since the voting of the Bitcoin Law in June 2021, El Salvador is a notorious cryptocurrency-friendly country. It is indeed legal and very positively received to engage in cryptocurrency business in this jurisdiction.
However, to legally run a crypto project in or from El Salvador, it is necessary to obtain a crypto license. The process to obtain a crypto license involves submitting an application to the relevant authority, meeting compliance requirements, and paying the necessary fees. Obtaining a crypto license is essential for legal operation and business growth within the country’s regulatory framework. Two licenses exist in Salvador, one of which is issued by the Central Bank of Reserve and only permits to work with Bitcoin (BTC Service Provider License). There are several types of crypto licenses in El Salvador, each designed for different business models and regulatory needs.
The main crypto license allowing to operate as a crypto company in El Salvador is called the PSAD (Proveedor de Servicios de Activos Digitales) or DASP License, in English (Digital Assets Services Provider). It is issued and regulated by the National Commission on Digital Assets (CNAD in Spanish, for Comisión Nacional de Activos Digitales).
| Duration | 2 to 6 months |
| Local office | No |
| Local director | No |
| Accounting and auditing | Yes |
| Economic substance | No |
| Government fee | from 5,475 USD |
| Corporate income tax (CIT) | 0% with tax benefits |
| Withholding tax (WHT) | 12% |
For a cryptocurrency company to engage in crypto activities in El Salvador, a certain number of requirements must be met before the application is filled out for review by the CNAD. These requirements are of various nature: corporate, professional, technical, and legal.
Limited liability company registration in El Salvador, including submission of corporate documents to the commercial registry, which is the authority responsible for formal company registration and legal validation;
Detailed organizational chart;
Local director or legal representative;
Cybersecurity officer;
Compliance officer;
AML-KYC policies and processes;
Data protection systems;
Detailed business plan, including a description of the applicant’s business model, target markets, and long-term plans;
Description of all the digital assets that the company will work with;
Actual customer support & transparent information to the clients;
Registration as digital assets services providers in order to provide digital asset services in compliance with local regulations.
The first requirement is to set up a company in El Salvador. The DASP license can only be granted to a Salvadorian legal entity. The company should then provide a detailed organizational structure with a presentation of every participant.
Among the team of the company, there should be at least one person responsible for cybersecurity duties, under the position of Computer Security Officer. Another individual shall be appointed by the company as a Compliance Officer, in order to ensure continuous compliance with the laws and regulations pertaining to cryptocurrency activities in El Salvador.
On the technical and financial levels, the applicant must demonstrate its ability to offer the digital services it intends to provide. In this regard, the applicant must disclose the list of the digital assets it plans to work with and a description of each of these cryptocurrencies.
If the crypto project is willing to launch its own coin or token, it should look into the Law on Emitting Digital Assets once it has been licensed but shall already describe the token and its intended use in the application.
The crypto company is required to have and demonstrate its processes and systems which:
Provide user support as necessary;
Safeguard the personal information of all parties;
Maintain a program against money laundering and financing of terrorism, following the Salvadorian law and the guidelines of the Financial Action Task Force (FATF).
Finally, the applicant must pay the registration fee of 5,475 USD.
As a crypto-friendly and business-incentivizing jurisdiction, the process to form a cryptocurrency company in El Salvador is as comprehensive as possible.
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