El Salvador was the first country to recognize Bitcoin as legal tender, creating an enabling environment for cryptocurrency businesses.
Whether you are an entrepreneur looking to start a cryptocurrency business or an established company looking to expand, obtaining a cryptocurrency license in El Salvador can give you a significant advantage.
Rengang Yongsheng's experienced team will help you complete this process efficiently and confidently.
Cryptocurrency licenses show customers and investors that your business is legitimate and trustworthy.
Protect your business
A license ensures you meet legal standards and protects your business from fines or going out of business.
Entering new markets
With licenses, you can do business in more markets and build better partnerships.
Why choose El Salvador for cryptocurrency business?
El Salvador's pioneering approach to cryptocurrency regulation provides a very favorable environment for cryptocurrency businesses. Some of these key advantages include
Password friendly environment
El Salvador was the first country to use Bitcoin as its official currency, resulting in a unique and supportive crypto ecosystem. This provides an unparalleled opportunity for businesses to seamlessly integrate Bitcoin into their business.
tax preference
A 0% tax on profits generated from cryptocurrency-related activities makes it an attractive jurisdiction for entrepreneurs. This means that businesses can maximize their earnings and reinvest them in further development without worrying about excessive taxes.
Progressive regulation
The government has established a transparent licensing process to support Bitcoin and other digital assets, ensuring that businesses have a clear and orderly path to compliance.
Global recognition
As a pioneer in cryptocurrency regulation, businesses operating in El Salvador will benefit from greater credibility and global trust. Having a business here sends a strong signal to investors and partners that you are committed to doing business in a forward-thinking jurisdiction.
Strategic location
El Salvador's progress in cryptocurrencies makes it an ideal base to enter the global market.
With these advantages, establishing a crypto company in El Salvador can give you a strategic advantage in the market.
Encryption License Type
Bitcoin Service Provider (BSP)
The BSP license is specifically designed for businesses that intend to conduct business using only Bitcoin (which El Salvador recognizes as legal tender). The license is ideal for companies focused on Bitcoin-related services, such
Use Bitcoin for payment processing and remittances.
Bitcoin Custody and Storage Solutions.
Develop infrastructure for Bitcoin-based financial services.
Digital Asset Service Provider (DASP)
In contrast, DASP licenses are available to businesses that use a wider range of cryptocurrencies, including alternatives such as Ethereum, Litecoin and stablecoins. In addition to Bitcoin, companies that need a broader scope of business can also benefit from the license, which includes.
Cryptocurrency exchanges and trading platforms.
Token issuance and ICO/IDO projects.
Digital wallet service for multiple cryptocurrencies.
BSP vs. DASP: Understanding the Difference
Costs and conditions for 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 throughout the process to ensure compliance and efficiency.
BSP software package
€19 900
Company establishment
Register as a Bitcoin Service Provider (BSP)
Trade registration and document preparation
DASP BSP Extension Pack
€29 900
All services included in the BSP package
Register as a Digital Asset Service Provider (DASP)
Personalized Anti-Money Laundering/KYC Policy
Finding and hiring local labor inspectors
Assistance in opening local bank accounts
Detailed licensing procedures
The process of obtaining a cryptocurrency license in El Salvador involves several key steps to ensure full compliance with regulatory requirements:
Initial consultation
Understand your business needs and choose the right license (BSP or DASP). Our experts analyze your business model and provide recommendations tailored to your operational goals.
Establishment of a company
Register a legal entity with the required shareholder and director structure. This includes drafting articles of association, appointing key personnel and registering with the local government.
Document preparation
Prepare all necessary corporate and compliance documents, including AML/KYC policies, financial projections and internal risk management framework.
Regulatory Submission
Submit the application to the relevant department for review. At this stage, the regulator may request additional information or clarification.
Approvals and Settings
Once approved, complete all business settings, including opening a company bank account and completing tax registration.
Our team carefully manages every step of the way to ensure a seamless experience.
Requirements for obtaining an encryption license
To obtain a cryptocurrency license in El Salvador, businesses must meet specific regulatory requirements. These requirements include
Company Structure:
There are at least 2 shareholders (co-founders), 1 director and 1 acting director. The selected personnel should have the necessary expertise and qualifications to meet the expectations of the regulator.
Local presence
Appointment of a local representative and an anti-money-laundering officer in El Salvador. This ensures compliance with local laws and smooth interaction with regulators.
Registered Address
The address of the company legally registered in the country. Having a physical institution can also strengthen your credibility and boost your business.
Capital requirements
The minimum share capital is $2000. Compared with other jurisdictions, this requirement is relatively low, enabling start-ups and small businesses to meet this requirement.
Meeting these criteria is critical to the successful completion of the licensing process. Our team will assist you every step of the way to ensure compliance and operational readiness.
How we can help
At Rengang Yongsheng, we ensure a seamless experience by assisting with documentation, compliance, company registration, licensing and bank account setup. Our comprehensive services include but are not limited
Prepare and certify required documents.
Provide guidance on local regulations and compliance, including auditing and accounting.
Full support for bank account opening according to your needs.
Assist in setting up accounting software.
Our expertise and commitment allow you to focus on your business growth without worrying about the licensing process.
Frequently Asked Questions (FAQ)
What is a cryptocurrency license in El Salvador?
Crypto licenses allow businesses to operate legally in the cryptocurrency space, including services such as trading, hosting and issuing digital assets.
Who can apply for a cryptocurrency license?
Any legal entity with at least two co-founders may apply, provided that it meets the regulatory requirements established by the Salvadoran authorities.
Who can apply for a cryptocurrency license?
El Salvador offers a Bitcoin Service Provider (BSP) license that applies only to Bitcoin services and a Digital Asset Service Provider (DASP) license that applies to a wider range of digital assets.
What are the types of encryption licenses?
El Salvador offers a Bitcoin Service Provider (BSP) license that applies only to Bitcoin services and a Digital Asset Service Provider (DASP) license that applies to a wider range of digital assets.
What documents are required when applying?
Required documents include a detailed business plan, co-founder identification, AML/CFT compliance policy, and cybersecurity protocols.
How long does it take to apply for a cryptocurrency license in El Salvador?
This process usually takes up to 12 weeks.
Can I use multiple cryptocurrencies under one license?
Yes, the DASP license allows you to use multiple cryptocurrencies.
How much does it cost to maintain a license?
The government's annual renewal fee is $3,500, plus operational costs such as legal representation and anti-money laundering compliance.
What happens if my application is rejected?
We provide comprehensive support and guidance to resolve any issues and resubmit the application if necessary.
Do I need to go to El Salvador in person to get a license?
No, the licensing process can be done remotely as long as proper documentation and local representation are available.
Can a foreigner own 100 percent of a cryptocurrency company in El Salvador?
Yes, there are no restrictions on foreign ownership; a foreigner can own a crypto company outright.
Are there any ongoing reporting requirements?
Yes, licensed companies must meet regular reporting obligations, including financial statements and anti-money laundering reports.
Does El Salvador Have Restrictions on Cross-Border Cryptocurrency Transactions?
No, El Salvador advocates an open cryptocurrency economy with no restrictions on international cryptocurrency transactions.
Can I apply for both BSP and DASP licenses?
Yes, if your business involves Bitcoin and other digital assets, you can apply for both licenses.
Need some help?
Connect with our licensing experts to discuss a solution tailored to your business. We will provide you with a personalized offer within 1 hour of the working day.
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