Why El Salvador?
Advantages
- Openness. El Salvador has always been open to foreign direct investment, and the country bases its development strategy on a policy of openness to trade, investment and international competition.
- Official recognition of bitcoin. El Salvador became the first country in the world to recognize bitcoin as an official means of payment. Although it lost this status in 2025 due to pressure from the IMF, El Salvador added this cryptocurrency to its reserves until the last.
- The launch of the project here is quite fast. Everything is relative, but the timeline will clearly be shorter compared to most other jurisdictions where a special crypto license is required. This makes El Salvador particularly attractive for those who value speed.
Limitations
- Instability and high levels of corruption. Unfortunately, El Salvador ranks quite high in the Corruption Perceptions Index. Moreover, the last decades were not easy for the country. However, now the situation is gradually improving.
- In some cases, the compliance officer must be a resident of El Salvador. This is relevant if you intend to work with bitcoin. However, we can help you overcome this barrier.
- There is no specific regulation regarding mining and DAOs. For some, the lack of strict regulations may be an advantage, but for those who value transparency and a clear regulatory framework, the uncertainty can be a major obstacle.
- Spanish is the official language. Although the majority of the population, especially the business community, speaks English, the official language is Spanish, which may entail additional inconvenience or expense.
Who is eligible for a license in El Salvador
- Token Issuers.
- Crypto exchanges and exchanges.
- P2P platforms.
- Cryptocurrency wallets and depositories.
- Cryptocurrency funds and investment companies.
- Broker-dealers.
Cost
The level of expenses for legalization in the jurisdiction is average.
- Company formation fee: USD 279.26
- Authorized capital: not less than USD 2,000
- Application fee for license application: depending on the type of permit varies from USD 0 to USD 5,475.
- Annual license fee: depending on the type of permit varies from USD 0 to USD 3,650 or 0.01% of the amount of the authorized public offering (in case of issuance)
Main stages of legalization
Company registration in El Salvador
- Filling out the registration form with key information and preparing data for registration.
- Obtaining a tax number.
- Formalization of constituent documents.
- Registration in the commercial register of companies.
Cryptolicensing in El Salvador
If it is a non-issue activity:
- Obtaining prior authorization in terms of crypto-licensing (relevant only for a certain type of license.
- Payment of the initial registration fee (relevant only for a certain type of license).
- Preparing the basic documentation package and applying for a cryptolicense.
- Regulator's review of the application and final approval.
- Post-license compliance, including payment for the first year of the license (only relevant for a particular license type).
If it is an issue-related activity:
- Submitting an application to the regulator for registration of the proposal.
- Preparation of an informational document describing the proposal.
- Involvement of a certifier - an accredited expert to verify such document.
- The expert prepares a report for the regulator with a recommendation.
- Review of the application by the regulator and issuance of a decision.
- Publication of the advertisement and payment of the fee.