Crypto License in El Salvador
El Salvador is the first country to recognize Bitcoin as legal tender, creating a favorable environment for cryptocurrency operations.
Whether you are an entrepreneur looking to start a crypto business or an established company seeking expansion, obtaining a crypto license in El Salvador offers significant advantages.
Our experienced team at Adam Smith is here to help you navigate the process efficiently and confidently.
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Our team has extensive experience in cryptocurrency regulations and business law.
We tailor our services to meet the unique needs of your business.
From initial consultation to ongoing compliance, we provide end-to-end support.
Why Choose El Salvador for Your Crypto Business?
El Salvador offers a highly favorable environment for crypto businesses, thanks to its pioneering approach to cryptocurrency regulation. Some of the key benefits include:
El Salvador is the first country to adopt Bitcoin as an official currency, fostering a unique and supportive crypto ecosystem. This provides businesses with an unparalleled opportunity to integrate Bitcoin into their operations seamlessly.
0% tax on profits derived from crypto-related activities, making it an attractive jurisdiction for entrepreneurs. This means businesses can maximize their earnings and reinvest them into further growth without worrying about excessive taxation.
The government has established transparent licensing processes to support both Bitcoin and other digital assets, ensuring that businesses have a clear and structured path to compliance.
As a trailblazer in crypto regulation, businesses operating in El Salvador benefit from enhanced credibility and global trust. Establishing operations here sends a strong signal to investors and partners about your commitment to operating in a forward-thinking jurisdiction.
El Salvador’s progressive approach to cryptocurrency makes it an ideal base for accessing global markets.
With these advantages, establishing your crypto company in El Salvador can provide you with a strategic edge in the market.
Types of Crypto Licenses
The BSP license is specifically designed for businesses that intend to operate solely with Bitcoin, which is recognized as legal tender in El Salvador. This license is ideal for companies focusing on Bitcoin-related services such as:
- Payment processing and remittances using Bitcoin.
- Bitcoin custody and storage solutions.
- Developing infrastructure for Bitcoin-based financial services.
Since Bitcoin has a unique legal status in El Salvador, businesses with a BSP license can seamlessly integrate into the country’s Bitcoin economy, benefiting from regulatory clarity and a supportive ecosystem.
In contrast, the DASP license caters to businesses working with a broader range of cryptocurrencies, including altcoins such as Ethereum, Litecoin, and stablecoins. Companies that require a more extensive scope of operations beyond Bitcoin can benefit from this license, which covers:
- Cryptocurrency exchanges and trading platforms.
- Token issuance and ICO/IDO projects.
- Digital wallet services for multiple cryptocurrencies.
Choosing the right license depends on your business model and strategic goals. Our experts can help you determine which option aligns best with your operations.
BSP vs. DASP: Understanding the Difference
Choosing the right crypto license in El Salvador is a crucial step in establishing your business. The country offers two primary types of licenses, each designed to accommodate different operational scopes and business goals. Understanding the distinction between these licenses is essential for making an informed decision that aligns with your company’s vision.
Cost and terms of obtaining a cryptocurrency license in El Salvador:
Each package is tailored to meet the regulatory and operational requirements of your business. Our team will guide you through the entire process to ensure compliance and efficiency.
- BSP Package€19 900
- DASP + BSP Extended Package€29 900
Detailed Licensing Process
The process of obtaining a crypto license in El Salvador involves several key steps to ensure full compliance with regulatory requirements:
Understanding your business needs and selecting the appropriate license (BSP or DASP). Our experts analyze your business model and provide tailored recommendations based on your operational goals.
Registering the legal entity with the required shareholder and director structure. This involves drafting the company’s bylaws, appointing key personnel, and registering with local authorities.
Compiling all necessary corporate and compliance documents, including AML/KYC policies, financial projections, and internal risk management frameworks.
Submitting the application to the relevant authorities for review. During this stage, regulators may request additional information or clarifications.
Once approved, completing all operational setups, including opening a corporate bank account and finalizing tax registrations.
Each step is carefully managed by our team to ensure a seamless experience.
Requirements for Obtaining a Crypto License
To obtain a crypto license in El Salvador, businesses must fulfill specific regulatory requirements. These include:
A minimum of 2 shareholders (co-founders), 1 director, and 1 substitute director. The chosen individuals should have the necessary expertise and credentials to meet regulatory expectations.
Appointment of a local representative and an AML officer in El Salvador. This ensures compliance with local laws and smooth interaction with regulatory authorities.
A legally registered company address within the country. Having a physical presence can also strengthen your credibility and facilitate operations.
A minimum share capital of $2,000 USD. This requirement is relatively low compared to other jurisdictions, making it accessible for startups and small businesses.
Meeting these criteria is crucial for a smooth licensing process. Our team will assist you at every step to ensure compliance and operational readiness.
How We Can Help
At Adam Smith, we ensure a seamless experience by assisting with documentation, compliance, company incorporation, licensing, and bank account setup. Our comprehensive services include, but are not limited to:
Our expertise and commitment make the licensing process hassle-free, allowing you to focus on growing your business.
Timeline
The entire licensing process typically takes up to 12 weeks, depending on the complexity of the application and document readiness. We work diligently to ensure timely and efficient processing.
Request a Consultation Request a ConsultationFrequently Asked Questions (FAQ)
A crypto license allows businesses to operate legally in the cryptocurrency sector, including services like trading, custody, and issuance of digital assets.
Any legal entity with at least two co-founders can apply, provided they meet the regulatory requirements set by El Salvador’s authorities.
El Salvador offers Bitcoin Service Provider (BSP) licenses for Bitcoin-only services and Digital Asset Service Provider (DASP) licenses for a wider range of digital assets.
El Salvador offers Bitcoin Service Provider (BSP) licenses for Bitcoin-only services and Digital Asset Service Provider (DASP) licenses for a wider range of digital assets.
Required documents include a detailed business plan, identification for co-founders, AML/CFT compliance policies, and cybersecurity protocols.
The process usually takes up to 12 weeks.
Yes, a DASP license allows you to work with a wide range of cryptocurrencies.
Annual government renewal fees are $3,500 USD, plus operational costs such as legal representation and AML compliance.
We provide full support and guidance to address any issues and resubmit the application if necessary.
No, the licensing process can be completed remotely with proper documentation and local representation.
Yes, there are no restrictions on foreign ownership; a foreigner can fully own a crypto company.
Yes, licensed companies must comply with periodic reporting obligations, including financial statements and AML reports.
No, El Salvador promotes an open crypto economy with no restrictions on international crypto transactions.
Yes, you can apply for both licenses if your business deals with Bitcoin and other digital assets.
Do you want to obtain a crypto license in El Salvador?
El Salvador offers a unique and advantageous environment for cryptocurrency businesses. With AdamSmith Law Firm’s expert guidance, you can navigate the licensing process smoothly and efficiently, ensuring your business complies with all legal requirements and is set up for success in the global crypto market.
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