Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence - DASP, BTCSP or both - and leads the file all the way to approval, including banking and payment rails.
Get a crypto license in El Salvador.
Fast, legal, compliant. One of the most progressive jurisdictions in the world for crypto business - with an official legal framework for exchanges, VASPs and digital finance, and Bitcoin as legal tender.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Crypto licenses obtainedlicenses obtained
Updated
El Salvador in brief
A jurisdiction built around digital assets.
This Central American country of 6.3 million was the first in the world to adopt Bitcoin as legal tender, back in 2021. Since then it has built a complete legal framework for digital assets: the Digital Assets Issuance Law, a dedicated regulator and a licensing regime designed to attract crypto businesses rather than merely tolerate them.
Licensing is handled by the National Commission of Digital Assets (CNAD). DASP licenses cover exchanges, custody, asset management and token issuance, while the BTCSP regime serves Bitcoin-focused services. Crypto gains are tax-exempt, capital moves freely across the border, and applications are reviewed in months rather than years - with the regulator in direct contact with applicants.
The first country to adopt Bitcoin as legal tender - with a complete legal framework for digital assets and a licensing regime built to attract crypto business.
CNAD issues DASP and BTCSP licenses, crypto gains are tax-exempt, and applications are reviewed in months - with direct access to the regulator.
Two license types
DASP & BTCSP - the licenses behind every crypto activity.
Based on a presidential decree, two key types of licenses have been introduced. Holding both enables a cryptocurrency company to cover the entire spectrum of operations across the value chain: from onboarding and regulatory compliance to trading and full-scale activity in the digital asset market.
Based on a presidential decree, two key types of licenses have been introduced. Holding both covers the entire spectrum of operations: from onboarding and compliance to trading in the digital asset market.
01 - DASP
Digital Assets Service Provider
For providers of services related to digital assets. The official right to operate as a virtual asset service provider.
For providers of services related to digital assets. The official right to operate as a virtual asset service provider.
- ✓Digital asset trading & crypto exchange operations
- ✓Provision of custodial wallets
- ✓Digital asset management
- ✓Token issuance, including security tokens
- ✓Blockchain-based payment solutions
- ✓Settlements and transfers in virtual assets
02 - BTCSP
Unique to El SalvadorBTC Service Provider
Unique to the Salvadoran jurisdiction. Designed for crypto companies operating exclusively in the BTC sphere, with legal clarity for Bitcoin-related activities.
Unique to the Salvadoran jurisdiction. Designed for crypto companies operating exclusively in the BTC sphere.
- ✓Bitcoin exchange and trading
- ✓BTC wallets and custody - Bitcoin is legal tender here
- ✓BTC payments, settlements and transfers
- ✓Client onboarding in compliance with KYC/AML
- ✓Regulatory compliance and regular reporting
- ✓Opening bank accounts and facilitating transactions
Costs and timelines are starting figures, confirmed for your case before any work begins. Minimum share capital depends on the licence type - from $1,000 to $2,500, and government and third-party fees are itemised in your quote.
Why El Salvador
One of the best jurisdictions for crypto projects.
The framework rests on two statutes: the Bitcoin Law (Legislative Decree No. 57 of 2021) and the Digital Assets Issuance Law (Legislative Decree No. 643 of 2023), which created the National Commission of Digital Assets (CNAD). Together they give crypto businesses what few jurisdictions offer. A purpose-built legal regime instead of banking rules stretched to fit.
✓
Two statutes, one clear regime
The Bitcoin Law (Decree No. 57/2021) governs Bitcoin-specific services, while the Digital Assets Issuance Law (Decree No. 643/2023) covers every other digital asset. Activities that elsewhere sit in a grey zone between banking and securities law are expressly regulated here.Bitcoin Law (57/2021) + Digital Assets Law (643/2023). A purpose-built regime, not banking rules stretched to fit.
✓
Tax exemption written into statute
Article 36 of the Digital Assets Issuance Law exempts digital-asset returns and capital gains from income tax, and under Article 5 of the Bitcoin Law BTC exchange operations bear no capital gains tax. The exemption sits in the statute itself, not in a revocable administrative ruling.Art. 36 LEAD: digital-asset gains exempt from income tax. Art. 5 Bitcoin Law: no capital gains tax on BTC.
✓
A regulator built for crypto
Licensing sits with CNAD, a commission created by the 2023 law solely for the digital-asset sector. Files are reviewed by examiners whose only mandate is crypto. In practice 2-4 months, with direct contact rather than correspondence through a general financial regulator.CNAD's only mandate is digital assets. Reviews run 2-4 months with direct examiner contact.
✓
Defined AML/CFT perimeter
Providers register with the Financial Investigation Unit (UIF) and appoint a compliance officer under the Anti-Money-Laundering Law (Decree No. 498). The KYC/AML duties track FATF standards, so a program built for El Salvador passes muster with foreign banks and partners.UIF registration and a compliance officer under Decree 498; KYC/AML duties track FATF standards.
✓
Public registry status
DASPs are entered in the public Registry of Digital Asset Service Providers kept by CNAD; Bitcoin-only businesses register as BTCSPs under the Bitcoin Law's implementing regulations. Registered status gives banks and counterparties a verifiable legal anchor for onboarding.Public registries: DASP with CNAD, BTCSP under the Bitcoin Law regulations. A verifiable anchor for banks.
✓
USD economy, free capital flow
The US dollar has been legal tender since 2001 (Monetary Integration Law), and there are no exchange controls. The January 2025 amendments to the Bitcoin Law made acceptance by private businesses voluntary. Aligning the regime with IMF program terms while keeping Bitcoin's legal-tender status and the tax incentives intact.USD legal tender since 2001, no exchange controls; the 2025 reform made private BTC acceptance voluntary.
How it compares
How El Salvador differs from other countries.
In many jurisdictions, potential VASPs and crypto exchanges find it difficult to determine which regulatory requirements they must comply with. El Salvador, in contrast, offers a transparent, predictable, and formalized legal procedure.
El Salvador vs other jurisdictions
| Feature |  El Salvador | Other jurisdictions |
|---|---|---|
| Legal status of BTC | Legal tender (voluntary use, 2025) | Not legal tender |
| Types of licenses | DASP, BTCSP | Mostly VASP or generic |
| Crypto taxation | No capital gains tax on BTC | Varies, often strict |
| Licensing speed | Fast (2-4 months) | Often 6+ months |
Legal status of BTC
El SalvadorLegal tender (voluntary use, 2025)
Other jurisdictionsNot legal tender
Types of licenses
El SalvadorDASP, BTCSP
Other jurisdictionsMostly VASP or generic
Crypto taxation
El SalvadorNo capital gains tax on BTC
Other jurisdictionsVaries, often strict
Licensing speed
El SalvadorFast (2-4 months)
Other jurisdictionsOften 6+ months
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| El Salvador | DASP, BTCSP | No capital gains tax for BTC | Clear, supportive |
 Estonia | VASP | Standard capital gains tax | Stricter, frequently changing |
 UAE | VARA, ADGM | 0% / 9% corporate | Complex, multi-tiered |
 USA | MSB, State licenses | Capital gains tax applies | High compliance, costly |
El SalvadorLicense typeDASP, BTCSP
TaxationNo capital gains tax for BTC
RequirementsClear, supportive
EstoniaLicense typeVASP
TaxationStandard capital gains tax
RequirementsStricter, frequently changing
UAELicense typeVARA, ADGM
Taxation0% / 9% corporate
RequirementsComplex, multi-tiered
USALicense typeMSB, State licenses
TaxationCapital gains tax applies
RequirementsHigh compliance, costly
Before you apply
Requirements for obtaining a license in El Salvador.Requirements for obtaining a license.
The government has developed a specialized regulatory framework governing the digital asset sector. A comprehensive set of compliance rules and documentation requirements for both first- and second-tier service providers.
01
Company registration. Local legal entity, confirmation of business register in El Salvador.
02
Capital requirements. Minimum capital depends on scope of services (varies for DASP/BTCSP).
03
Directors and founders. At least one certified director; comprehensive background checks on founders.
04
Compliance officer. Appointment of an AML/compliance officer.
05
KYC/AML policy. Comprehensive Know Your Customer and anti-money laundering policy.
06
Legal documents. Company charter, operating agreement, share capital structure.
07
Application. Submission of a detailed application with supporting documents.
08
Business plan. Detailed business model and risk assessment.
09
Security measures. Implementation of digital security, data protection, and wallet controls.
10
Fee payment. Payment of licensing and register fees.
11
Ongoing reporting. Compliance with the regulatory authority's reporting standards.
01
Company registration. Local legal entity, confirmation of business register.
02
Capital requirements. Minimum capital depends on scope of services.
03
Directors and founders. At least one certified director; background checks on founders.
04
Compliance officer. Appointment of an AML/compliance officer.
05
KYC/AML policy. Comprehensive KYC and anti-money laundering policy.
06
Legal documents. Charter, operating agreement, share capital structure.
07
Application. Detailed application with supporting documents.
08
Business plan. Business model and risk assessment.
09
Security measures. Digital security, data protection, and wallet controls.
10
Fee payment. Licensing and register fees.
11
Ongoing reporting. The regulator's reporting standards.
Note: All applicants must disclose information about ultimate beneficial owners and undergo a full due diligence review. Client funds must be clearly separated from the company's own assets.Note: All applicants must disclose ultimate beneficial owners and undergo full due diligence. Client funds must be separated from company assets.
How it works
Registering a crypto company: stages and timeline.
01
Company formation and preparation
Establishing a local legal entity, appointing directors, opening a bank account, and preparing the initial set of legal documents.Local entity, directors, bank account and the initial set of legal documents.
02
Compliance structure setup and application submission
Developing internal compliance procedures (including AML/KYC), gathering all required documentation, and submitting the application to the competent authority.Developing internal compliance procedures (AML/KYC), gathering documentation, and submitting the application.
03
Regulatory review of the application
The regulator reviews the submitted materials and may request additional documents or clarifications if necessary.The regulator reviews the materials and may request additional documents or clarifications.
04
Decision and license issuance
Upon approval, the license and registration fees are paid, after which the cryptocurrency license is officially issued.Upon approval, the license and registration fees are paid, after which the license is officially issued.
05
Ongoing regulatory compliance
The company must continuously meet reporting obligations, including submitting audited financial statements and operational reports to the regulator.Reporting obligations, audited financial statements and operational reports.
Quick facts
Available licensesDASP · BTCSP
Issuance time2-4 months
Company registrationMandatory, local entity
Share capitalfrom $1,000-2,500
ComplianceAML/KYC + officer
RegulatorCrypto-friendly authority
BankingMulti-currency accounts
ReportingAnnual, with audit
Estimated timeframes depend on the company's readiness and the completeness of the submitted documentation. Prifinance provides full support. Clients go through the licensing process faster and without errors.
On the ground in El Salvador
Local expertise, not a faceless agency.
Prifinance - El Salvador
San Salvador · El Salvador
Local incorporation & licensing support (registered office address - provided on engagement)
01
Local company registration
The applicant must register a legal entity in El Salvador. We handle formation, the business register confirmation and the initial legal documents end to end.We handle formation, the business register confirmation and the initial legal documents end to end.
02
Deep knowledge of local legislation
With many years of experience in international licensing, the team selects the appropriate license (DASP or BTCSP) and prepares all documentation.The team selects the appropriate license (DASP or BTCSP) and prepares all documentation.
03
Direct interaction with regulators
Companies registered in El Salvador gain direct interaction with regulators and benefit from an expedited application and review process.Companies registered in El Salvador benefit from an expedited application and review process.
04
Support throughout registration
Transparency, legality, and full regulatory compliance. Allowing clients to focus on growing their business in one of the world's most progressive crypto jurisdictions.Transparency, legality and full regulatory compliance. You focus on the business.
We also have offices in
Tallinn
Estonia
Roseni 13
Dubai
UAE
33 Level, Al Saqr Business Tower
London
United Kingdom
7 Bell Yard
Prague
Czech Republic
Vlkova 532/8, Žižkov
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of crypto companies in El Salvador.
El Salvador's tax system for the cryptocurrency sector is considered one of the most progressive and business-oriented in the world. A transparent and straightforward tax model designed to attract virtual asset service providers.
No capital gains tax on BTC
A unique exemption for transactions involving Bitcoin and certain other digital assets. A significant advantage for businesses and investors.A unique exemption for transactions involving Bitcoin and certain other digital assets.
Corporate tax 30%
Deductions for operational expenses (business costs, legal services, audits, compliance) are allowed, enabling optimization of the taxable base.Deductions for operational expenses (business costs, legal services, audits, compliance) are allowed.
No VAT on crypto transactions
The sale and exchange of cryptocurrencies and digital assets are not subject to VAT. More flexible pricing and maximized cash flow.The sale and exchange of cryptocurrencies and digital assets are not subject to VAT.
Free capital flow
Multi-currency bank accounts and free movement of capital within and outside of El Salvador, without currency control restrictions.Multi-currency bank accounts and free movement of capital, without currency control restrictions.
Double taxation treaties
International agreements to avoid double taxation. Especially important for companies operating in multiple jurisdictions.International agreements to avoid double taxation across jurisdictions.
Reporting obligations
Annual financial statements, audit reports, and certified accounting documents to the tax authority and the regulator; client funds kept separate.Annual statements, audit reports and certified accounting; client funds kept separate.
Tax summary
Corporate tax rate30%*
Capital gains tax (BTC)0%
VAT on cryptocurrency0%
Tax reportingAnnual, with audit
Double taxation agreementsYes
Fund separationMandatory
Capital movementFree, multi-currency
*Deductions allowed for compliance, legal, and operational expenses. Engage experienced tax advisors, maintain thorough records, and submit reports on time to keep licensed status.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and document preparation to regulatory interaction and compliance oversight - with in-depth expertise in DASP and BTCSP licenses and an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: local company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - you get licensed in El Salvador without a single flight to San Salvador.
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El Salvador · DASP / BTCSP
Launch your crypto project in El Salvador with expert support.
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DASP & BTCSP licenses: the practical answers.
What crypto licenses are available in El Salvador?+
El Salvador offers two types of crypto licenses: DASP (Digital Asset Service Provider) and BTCSP (Bitcoin Service Provider). Both allow companies to operate as crypto exchanges, wallet providers, digital asset trading platforms, and related service providers.
What activities are covered by DASP/BTCSP licenses?+
Licensed crypto companies can legally engage in cryptocurrency trading, exchange operations, custodial and wallet services, digital asset issuance, digital asset-based payments, and client onboarding. The full scope is defined in the submitted application and reflected in ongoing regulatory reporting.
What are the main legal and compliance requirements?+
Local company registration in El Salvador, minimum share capital from USD 1,000 to 2,500 (depending on license type), implementation of AML/KYC policies, appointment of a Compliance Officer, certification of company documents, and annual audit with regular reporting to the regulator.
What is the process and timeline for obtaining a license?+
The process includes company registration, preparation and submission of documents, regulatory review, fee payment, and license issuance. Estimated timeline: 2-4 months, depending on company readiness and compliance.
What financial conditions must be met to operate?+
Capital requirements depend on the license type and scope of business. Funds must be deposited in a local bank. Segregation of client funds from company capital is required to comply with regulatory standards.
What taxation applies to crypto companies?+
0% capital gains tax on BTC and certain digital assets; 30% corporate tax with deductions allowed for business and compliance expenses. Companies must file annual tax returns, financial statements, and audit reports.
Can a foreign company or investor apply?+
Yes. Foreign ownership and investment are allowed. Directors, shareholders, and beneficiaries must meet compliance certification standards.
Who is the main regulator, and what documents are required?+
Oversight is provided by the national financial regulator and the tax authority. Required documentation includes a full set of legal, financial, and compliance materials based on the license type.
What happens in case of non-compliance?+
Failure to meet legal, financial, or reporting obligations may result in license suspension, fines, or removal from the official registry. Ongoing compliance is mandatory for maintaining licensed status.
What are the advantages compared to other jurisdictions?+
Transparent legal framework, favorable tax regime, fast-track licensing process, low entry barriers, tech-forward regulation, government support, and global recognition as a crypto-friendly jurisdiction.
What crypto licenses are available in El Salvador?+
Two types: DASP (Digital Asset Service Provider) and BTCSP (Bitcoin Service Provider). Both allow companies to operate as crypto exchanges, wallet providers and digital asset trading platforms.
What activities are covered?+
Cryptocurrency trading, exchange operations, custodial and wallet services, digital asset issuance, digital asset-based payments, and client onboarding.
What are the main requirements?+
Local company registration, minimum share capital from USD 1,000 to 2,500 (depending on license type), AML/KYC policies, a Compliance Officer, certified documents and annual audit.
What is the process and timeline?+
Company registration, document preparation and submission, regulatory review, fee payment, license issuance. Estimated timeline: 2-4 months.
What financial conditions apply?+
Capital depends on the license type and scope. Funds must be deposited in a local bank; client funds are segregated from company capital.
What taxation applies?+
0% capital gains tax on BTC and certain digital assets; 30% corporate tax with deductions for business and compliance expenses.
Can a foreign company apply?+
Yes. Foreign ownership and investment are allowed; directors, shareholders and beneficiaries must meet compliance standards.
Who is the regulator?+
The national financial regulator and the tax authority. Documentation depends on the license type.
What happens in case of non-compliance?+
License suspension, fines, or removal from the official registry. Ongoing compliance is mandatory.
What are the advantages?+
Transparent framework, favorable taxes, fast licensing, low entry barriers, government support and global recognition.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
“I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license…”
Google
“Opening an account with Prifinance in a Swiss bank was such an easy and quick process that I was shocked. It all started with the first call, where I received detailed guidance on the required documents and the entire procedure.One of the key highlights was their attention to detail. As someone who usually gets tangled up in paperwork, I was pleasantly surprised when they sent me all the documents and…”
Google
“I recently had the pleasure of working with Boris.. and I must say, it was a fantastic experience. Boris went above and beyond to assist me with my residency needs. His professionalism, knowledge, and dedication truly stood out. I highly recommend working with Boris and the team!”
Google
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Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, structure, or licensing route fits your business.Get a free legal opinion on your project, which jurisdiction, structure, or licensing route fits your business.
✓Written legal opinion within 2-5 business days - free of charge✓A clear recommendation on DASP vs BTCSP, not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of any Salvadoran or other public authority. Licenses are granted by, and obtained directly from, the competent authorities.