Cryptocurrency license in El Salvador in 2024
El Salvador, a small country in Central America, became the first nation in the world to recognize Bitcoin as legal tender in September 2021. This decision was part of President Nayib Bukele's ambitious strategy to attract foreign investment and modernize the country's economy. El Salvador, long suffering from economic instability and dependence on remittances from abroad, saw cryptocurrencies as an opportunity for financial inclusion and economic growth. In a short time, the country created the necessary infrastructure for using Bitcoin, including the state-owned crypto wallet Chivo and a network of Bitcoin ATMs. Additionally, El Salvador announced an ambitious project called "Bitcoin City" - a special economic zone where favorable conditions for crypto businesses are planned to be created. These initiatives have attracted the attention of the global crypto community and made El Salvador one of the most discussed destinations for cryptocurrency business.
Requirements for obtaining a license
- Minimum capital: $200,000 USD.
- Company structure: Minimum 1 director and 1 shareholder.
- Physical office: An office in El Salvador is required.
- AML/KYC policies: Implementation of appropriate procedures is necessary.
- Documentation: Business plan, financial forecasts, information about beneficiaries.
Taxation
- Corporate tax: 25%
- VAT: 13%
- Dividend tax: 5%
- Exemption from capital gains tax for Bitcoin operations
License obtaining process
It is necessary to provide the company's incorporation documents, business plan, information about beneficiaries, and funding sources. The regulator reviews the provided information and may request additional data.
Timeframe for obtaining a crypto license: 2-3 months
The cryptocurrency license in El Salvador offers unique opportunities for businesses in the rapidly growing digital asset industry. Thanks to progressive legislation, tax incentives, and government support, El Salvador is becoming an attractive jurisdiction for crypto companies from around the world.
