Obtaining a Crypto Licence in El Salvador

Obtaining a crypto license in El Salvador has become a strategic step for fintech and blockchain companies aiming to expand into regulated markets with legal certainty. El Salvador stands out as one of the most progressive jurisdictions for cryptocurrency regulation, offering clear frameworks, quick registration processes, and attractive taxation conditions. For many investors and startups, understanding the crypto license in El Salvador cost and the licensing process is essential before launching digital asset operations.

Overview of Crypto Regulation in El Salvador

In recent years, El Salvador has become a global pioneer in cryptocurrency regulation. The government’s forward-thinking approach is reflected in the adoption of the Digital Asset Issuance Law (DAI Law) on January 11, 2023, which established the foundation for the crypto license in El Salvador regime. This law positions the country as one of the most attractive destinations worldwide for Digital Asset Service Providers (DASPs).

The crypto license in El Salvador cost remains competitive compared to other jurisdictions, while the country’s legislation provides clear guidance and strong governmental support for the development of the crypto industry. Additionally, many businesses view obtaining a crypto license in El Salvador as a strategic move before the MiCA regulation in Europe comes into full effect in 2025, introducing stricter requirements for authorized capital and operations.

Benefits of Obtaining a Crypto License in El Salvador

Securing a crypto license in El Salvador comes with multiple advantages that make it appealing for fintech and blockchain entrepreneurs:

Legality. Transparent and detailed regulation under the DAI Law ensures legal clarity for digital asset activities.
Promptness. The process for obtaining a crypto license in El Salvador is relatively fast and efficient.
Simplicity. Regulators are responsive and cooperative throughout the application process.
Convenience. Shareholders and directors may be non-residents.
Tax Benefits. Income earned outside the country is exempt from income tax.

Beyond these benefits, understanding the crypto license in El Salvador cost allows businesses to plan their entry strategy effectively and allocate resources efficiently.

Types of Crypto Licenses in El Salvador

El Salvador offers two primary types of crypto authorizations:

BSP License (Bitcoin Services): Required for companies offering Bitcoin exchange, payment, or storage services. Issued by the Central Reserve Bank (Banco Central de Reserva, BCR).
DASP License (Digital Assets Service Provider): Required for companies dealing with other cryptocurrencies. Managed by the National Commission for Digital Assets (Comisión Nacional de Activos Digitales, CNAD).

Both types fall under the general crypto license in El Salvador framework. Depending on the planned activity, the crypto license in El Salvador cost can vary, but remains significantly lower than in many European jurisdictions.

Requirements for Obtaining a Crypto License in El Salvador

To obtain a crypto license in El Salvador, a company must meet specific legal and operational requirements:

Company structure: At least two shareholders; one director responsible for cybersecurity coordination.
Minimum authorized capital: Equivalent to USD 2,000.
Registered address: A virtual office is sufficient, though a physical address is recommended.
Cybersecurity: Companies must implement protection measures and undergo external audits.
Accounting and reporting: Regular payroll, tax filings, and quarterly CNAD reports are mandatory.
AML/KYC compliance: Proper procedures must be established and maintained.

The total crypto license in El Salvador cost includes the state fee, legal support, and operational setup. While the minimum capital requirement is low, companies should budget for compliance, accounting, and government fees to maintain the license.

Process of Obtaining a Crypto License in El Salvador

The step-by-step process for obtaining a crypto license in El Salvador involves:

Company registration: Incorporation of a Limited Liability Company (Sociedad de Responsabilidad Limitada – SRL) in the Commercial Registry.
Application for DASP License: Submission to the CNAD for approval.
Corporate bank account: Deposit at least 5% of the share capital (minimum $2,000).
Government registrations: Notification to tax, social security, and labor authorities.

Depending on the business model, the crypto license in El Salvador cost and timeline can vary. On average, companies can expect to complete the process within 3 to 6 months.

Timeline and Estimated Cost

A turnkey crypto license in El Salvador usually takes between six and seven months to obtain, depending on the company’s business plan and scope of activities. The crypto license in El Salvador cost includes several components. The state fee is approximately USD 5,475, while annual maintenance fees are around USD 3,650. The minimum required share capital is USD 2,000, and at least two founders and two directors must be appointed. A local compliance officer is mandatory, but having a physical office in El Salvador is not required.

Companies holding a crypto license in El Salvador must file monthly accounting and tax reports. The corporate tax rate for DASP-licensed entities is 0%, which further reduces the crypto license in El Salvador cost over time. However, businesses should account for additional expenses such as legal support, company incorporation, and ongoing compliance services.

Tax Benefits for Crypto Companies in El Salvador

The crypto license in El Salvador provides significant fiscal advantages for crypto businesses. DASP companies are exempt from corporate income tax, and foreign-sourced income is not taxed. This makes the crypto license in El Salvador cost particularly favorable compared to other jurisdictions.

Simplified reporting and compliance processes further enhance operational efficiency, allowing companies to focus on scaling their digital asset services. El Salvador’s zero-tax regime for DASPs also increases investor confidence and profitability.

Why Choose El Salvador for Your Crypto Project

El Salvador’s clear regulatory environment, cost-effective framework, and international reputation make it one of the most promising destinations for blockchain startups. The combination of a transparent legal structure, responsive regulator, and low crypto license in El Salvador cost ensures an optimal balance between compliance and flexibility.

With MiCA approaching in Europe, more companies are choosing to establish operations in El Salvador to ensure regulatory stability and competitive advantage.

Conclusion

Despite being a relatively new regulatory environment, obtaining a crypto license in El Salvador presents strong opportunities for innovation and growth in the global fintech ecosystem. SBSB FinTech Lawyers provides comprehensive assistance — from company registration to full legal support — ensuring that clients fully understand the crypto license in El Salvador cost, requirements, and compliance obligations.

Since 2013, our firm has supported hundreds of fintech and crypto projects worldwide, offering tailored legal and regulatory solutions. Our experienced lawyers will help you obtain your crypto license in El Salvador, ensuring your business operates in full accordance with local legislation and international standards.

Have questions? Write to us at yuliya_barabash@sb-sb.com — our team will be happy to provide a detailed consultation on obtaining a crypto license in El Salvador and optimizing your legal setup.