BSP & DASP Licensing Support (El Salvador crypto license)

El Salvador has two separate authorization regimes for crypto businesses. DASP registration covers regulated services involving digital assets within the scope of the Digital Assets Issuance Law (LEAD), while Bitcoin services are subject to a separate regulatory framework. Companies operating a multi-asset platform that supports both Bitcoin and other crypto-assets may need both registrations.

In this article, the terms 'licence' and 'registration' are used interchangeably to refer to the regulatory authorisation process.

Key2Law provides end-to-end support for obtaining an El Salvador crypto license, including BSP and DASP registration. We assist crypto exchanges, custodians, wallet providers, payment platforms and token projects with company incorporation, licensing, compliance documentation and communication with local regulators.

• BSP and DASP licensing support within one project;
• Full assistance from incorporation to regulatory approval;
• Access to a specialised digital asset regulatory framework;
• El Salvador permits 100% foreign ownership. However, the standard corporate form (S.A. de C.V.) requires a minimum of two shareholders, both of whom may be foreign nationals or foreign entities;
• Potential tax benefits for licensed digital asset activities;
• Structured market entry into LATAM.

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Crypto licensing support backed by regulatory and compliance expertise

Key2Law supports crypto businesses throughout the BSP and DASP licensing process in El Salvador. Our team coordinates company incorporation, regulatory documentation, AML/CFT compliance and communication with the CNAD and the Financial Investigation Unit (Unidad de Investigación Financiera, UIF), working with local specialists where required.

Our approach combines regulatory, corporate and compliance support across the key stages of the licensing process:

• Practical knowledge of the Digital Assets Issuance Law and Bitcoin regulation;
• Support in defining the correct BSP, DASP or combined licensing scope;
• Coordination with local compliance officers, auditors and corporate service providers;
• Preparation of AML/CFT, KYC and internal control documentation;
• Clear project stages, deliverables and cost structure.

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El Salvador crypto license: key facts

El Salvador applies separate regulatory tracks to Bitcoin services and activities involving other digital assets. The summary below highlights the main differences between DASP and BSP authorisation, including their regulators, permitted activities and legal basis.

What is an El Salvador crypto license?

An El Salvador crypto license is a regulatory authorisation that allows a company to provide specified digital asset services in or from El Salvador. The required registration depends on the assets involved, the services offered, the operating structure and the role of the company in transactions with clients.

The regulated scope may cover:

• Exchange of digital assets for fiat currency or other digital assets;
• Operation of crypto trading or exchange platforms;
• Transfer of digital assets between users, wallets or accounts;
• Custody, administration and safeguarding of client assets;
• Receipt, transmission or execution of trading orders;
• Structuring and administration of digital asset products.

Regulatory framework

The licensing regime is primarily based on the Digital Assets Issuance Law and its implementing regulations, alongside the amended Bitcoin Law. In January 2025, El Salvador amended the Bitcoin Law (Legislative Decree No. 199, effective 30 April 2025) as part of its agreement with the International Monetary Fund. The amendments made Bitcoin acceptance voluntary for the private sector, removed Bitcoin as an accepted means of tax payment and initiated the wind-down of the state-operated Chivo wallet. The LEAD framework and the DASP registration process were not affected by these changes. BSP registration continues to be issued by the Banco Central de Reserva (BCR) for Bitcoin-specific services, although CNAD's supervisory responsibilities over the Bitcoin ecosystem have been expanded under the 2024 reforms. The National Commission of Digital Assets (CNAD) supervises the digital asset ecosystem and maintains the public register of authorised service providers, while AML/CFT obligations also involve the Financial Investigation Unit.

Before applying, the company must determine which regulated activities form part of its business model and prepare its corporate, operational and compliance framework accordingly. Operating without the required registration may expose the business to regulatory restrictions and prevent it from legally offering services in or from El Salvador.

Why El Salvador is a leading crypto jurisdiction

El Salvador has developed a dedicated legal and supervisory framework for digital asset businesses rather than regulating the sector only through general financial legislation. The National Commission of Digital Assets (CNAD) oversees the ecosystem, maintains registers of authorised market participants and publishes specific rules and application requirements for digital asset service providers.

Key advantages of establishing a licensed crypto business in El Salvador include:

• Specialised regulatory supervision: CNAD focuses specifically on digital assets, regulatory compliance and the secure development of the sector.
• Defined legal framework: the Digital Assets Issuance Law and supporting regulations establish rules for providers, issuers, public offerings and eligible digital assets.
• Tax incentives: qualifying activities and transactions may benefit from the tax treatment established under Article 36 of the Digital Assets Issuance Law, subject to the company’s licensed scope and individual tax position.
• Access for foreign businesses: the legislation permits foreign entities to participate in the regulated digital asset ecosystem when the applicable statutory conditions are met.
• Broad digital asset infrastructure: the framework covers service providers, token issuers, trading platforms, stablecoins and other regulated market participants.
• Entry point into Latin America: a Salvadoran regulated structure can support regional expansion, although each additional target market may impose its own licensing and compliance requirements.

Who needs a BSP or DASP license?

The required licence depends on the assets supported and the services provided by the business. Companies working only with Bitcoin generally fall within the BSP scope, while services involving other digital assets require DASP authorisation. A platform that supports both Bitcoin and other crypto-assets may need both.

The licensing requirement commonly applies to:

• Crypto exchanges: a DASP licence for trading in digital assets, with additional BSP registration where Bitcoin services are offered;
• Digital asset custodians: a DASP licence for holding, safeguarding or administering client assets;
• Wallet providers: BSP registration for Bitcoin wallets and DASP authorisation for wallets supporting other digital assets;
• Payment and remittance platforms: BSP registration where payments or cross-border transfers involve Bitcoin;
• Token issuers and offering participants: separate issuer/issuance requirements may apply under the Digital Assets Issuance Law. A DASP registration may additionally be required where the business performs regulated digital asset services;
• Multi-asset platforms: both BSP and DASP authorisation where the service combines Bitcoin with stablecoins, Ethereum or other assets.

Correctly defining the regulated scope before filing is essential. Applying for only one authorisation when the business model covers both categories may lead to additional regulatory requests, delays and changes to the operational structure.

Not sure which license you need?

The required licensing scope depends on the assets, services and transaction flow of your platform. Key2Law can assess your business model and determine whether you need BSP registration, DASP authorisation or both.

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Types of crypto licenses in El Salvador: BSP and DASP

El Salvador applies two main licensing regimes for crypto businesses. The required authorisation depends primarily on whether the company works with Bitcoin, other digital assets or both.

DASP license – Digital Asset Service Provider

A DASP license is issued by the National Commission of Digital Assets (CNAD) under the Digital Assets Issuance Law. It is intended for businesses providing regulated services involving digital assets other than Bitcoin.

Depending on the approved scope, a DASP license may cover crypto exchange, trading platforms, custody, transfers, administration of client assets, receipt and transmission of orders, and structuring of digital asset products. It functions as the Salvadoran equivalent of a VASP authorisation for non-Bitcoin digital asset services.

BSP license – Bitcoin Service Provider

A BSP license applies specifically to services involving Bitcoin. It is relevant to businesses offering Bitcoin exchange, payments, remittances, custody, wallet infrastructure or other BTC-related services.

Bitcoin is subject to a separate regulatory track in El Salvador, which is why BSP registration remains distinct from DASP authorisation. A DASP license alone does not automatically cover Bitcoin activities.

Companies operating multi-asset platforms that combine Bitcoin with stablecoins, Ethereum or other digital assets may therefore require both BSP and DASP authorisation.

BSP vs DASP license: what is the difference?

The main difference between BSP and DASP authorisation is the type of asset covered. A BSP license applies to Bitcoin-specific services, while a DASP license covers regulated activities involving other digital assets.

A DASP license does not automatically authorise Bitcoin services. A multi-asset platform offering Bitcoin together with stablecoins, Ethereum or other crypto-assets may therefore require both DASP and BSP authorisation.

Which license do I need?

Benefits of an El Salvador crypto license

An El Salvador crypto license gives a digital asset business a formal regulatory basis for operating in or from the country. It can also strengthen the company’s position when working with banks, payment providers, investors and institutional partners.

Key benefits include:

1. Regulatory legitimacy: authorised status demonstrates that the business operates within a defined legal and compliance framework.
2. Broader scope of services: depending on the approved licence, a company may provide exchange, custody, transfer, trading and other digital asset services.
3. Potential tax efficiency: qualifying licensed activities may benefit from tax incentives available under the Digital Assets Issuance Law.
4. 100% foreign ownership: El Salvador permits 100% foreign ownership. However, the standard corporate form (S.A. de C.V.) requires a minimum of two shareholders, both of whom may be foreign nationals or foreign entities.
5. Improved partner confidence: a regulated structure may support onboarding with banks, liquidity providers, payment partners and professional investors.
6. Access to the Latin American market: El Salvador can serve as a regional operating base, subject to the separate regulatory requirements of each target country.

The practical value of the licence depends on the approved scope, corporate structure and markets served. Key2Law helps align the licensing strategy with the company’s commercial and operational plans.

El Salvador crypto license requirements

The exact requirements depend on the services, assets and operational model covered by the application. For DASP registration, the applicant must demonstrate that it has an appropriate corporate structure, sufficient operational capacity and a compliance framework proportionate to the risks of its proposed activities. CNAD requires applicants to complete pre-registration and submit the relevant documentation in both digital and physical form.

A typical application package includes:

1. Local corporate presence: a company domiciled in El Salvador or another eligible legal structure with the required registration, legal representation and tax identification;
2. Transparent ownership and management: corporate documents and information on shareholders, ultimate beneficial owners, directors and key personnel;
3. Business and financial documentation: a detailed description of the business model, services, transaction flows, target markets, financial capacity and projected operations;
4. Compliance function: qualified compliance personnel and a governance structure capable of implementing AML/CFT obligations and regulatory reporting (at least one designated compliance officer must be resident in El Salvador and registered with the UIF);
5. Internal policies: AML/CFT, KYC, risk management, cybersecurity, data protection, business continuity, custody and internal control procedures;
6. Technical and operational framework: information on the platform, technology, security controls, wallet infrastructure and protection of client assets;
7. Fit-and-proper documentation: evidence supporting the integrity, experience and suitability of shareholders, directors and responsible officers;
8. Minimum share capital: USD 2,000, of which at least USD 100 must be deposited at incorporation

CNAD may request additional documents or clarification during its review. Key2Law helps define the correct regulatory scope, establish the Salvadoran corporate structure and prepare the application, compliance policies and supporting documentation required for submission.

How to get a crypto license in El Salvador?

The licensing process begins with defining the regulated scope of the project. The applicant must determine which assets and services will be offered, establish the required local structure and prepare corporate, operational and compliance documentation before the final filing.

Stage 1. Business model and licensing assessment

The first step is to analyse the platform’s services, supported assets, transaction flows and target clients. This determines whether the company requires DASP authorisation, a separate Bitcoin-related registration or a combination of regulatory approvals.

Stage 2. Pre-registration with CNAD

The applicant submits preliminary information about the company, its proposed activities and the persons responsible for the project. CNAD reviews the initial filing and may request clarifications or additional information before allowing the applicant to proceed.

Stage 3. Company incorporation and local setup

The applicant establishes a Salvadoran legal entity or another eligible local structure, obtains the required corporate and tax registrations and appoints the necessary local representatives and compliance personnel. The corporate bank account should be opened before submitting the CNAD registration application, as local credit institutions may apply enhanced due diligence to registered DASPs.

Stage 4. Preparation of the licensing package

A complete application package is prepared based on the approved business model. It normally includes:

• Corporate and ownership documents;
• Information on directors, shareholders and ultimate beneficial owners;
• A detailed business plan and financial projections;
• AML/CFT, KYC and sanctions policies;
• Risk management and internal control procedures;
• Cybersecurity, custody and business continuity documentation;
• Technical and operational descriptions of the platform.

Stage 5. Final application and regulatory review

The complete application is submitted to CNAD in the required format. During the review, the regulator may ask questions, request amendments or require additional evidence regarding the company’s governance, financial capacity, technology or compliance framework.

Stage 6. Approval, registration and operational launch

Following a favourable decision, the applicant completes the applicable fee and registration formalities and receives confirmation of its authorised status. The company must then implement its approved policies, reporting procedures and ongoing compliance controls before or upon commencing regulated operations.

Bitcoin-specific services may require a separate registration or regulatory assessment under the applicable Bitcoin framework. Key2Law coordinates the licensing strategy, local incorporation, application documents and communication with the relevant authorities throughout the process.

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AML/KYC and compliance requirements

Licensed crypto businesses in El Salvador must maintain an AML/CFT framework proportional to their services, clients, transaction volumes and geographic exposure. Compliance procedures should be implemented before regulated operations begin and updated as the company’s business model or risk profile changes.

The core compliance requirements generally include:

1. Customer due diligence: identification and verification of clients, beneficial owners and authorised representatives;
2. Risk-based KYC: enhanced checks for higher-risk clients, jurisdictions, products and transaction patterns;
3. Sanctions and PEP screening: screening against applicable sanctions lists and identifying politically exposed persons;
4. Transaction monitoring: ongoing review of transactions to detect unusual or potentially suspicious activity;
5. Suspicious activity reporting: escalation and reporting of relevant cases to the competent financial intelligence authority;
6. Internal controls: documented AML/CFT policies, risk assessments, approval procedures and allocation of compliance responsibilities;
7. Record-keeping: secure retention of customer, transaction and compliance records for a minimum of five (5) years, or such longer period as required by applicable law ;
8. Regulatory reporting: submission of periodic reports and other information requested by CNAD, UIF or another competent authority;
9. Cybersecurity and asset protection: controls designed to protect systems, client data, wallets and digital assets from unauthorised access or loss.

The company must also appoint appropriately qualified compliance personnel and ensure that responsible employees receive regular AML/CFT training. Depending on the authorised activities and scale of operations, independent testing or external audit of the compliance framework may also be required.

Key2Law assists with AML/CFT risk assessments, KYC procedures, sanctions controls, transaction monitoring rules and the internal policies required for licensing and ongoing operations.

El Salvador crypto license cost and approval timeline

The total cost and duration of obtaining an El Salvador crypto license depend on the licence type, business model, corporate structure and readiness of the applicant’s compliance framework. Projects involving custody, multiple asset types or a combination of regulated services usually require more extensive documentation and technical review.

The main cost components typically include:

• CNAD registration fee: the initial DASP registration fee is calculated as 15 times the applicable minimum monthly wage for the commerce and services sector, which currently puts it at approximately USD 5,475. The fee is payable within 10 business days after a favourable registration decision. Because this fee is indexed to the minimum wage, it changes automatically whenever the wage is adjusted by the Salvadoran authorities, the exact current amounts are better to confirm with Key2Law before filing.
• Company incorporation: registration of the Salvadoran entity, corporate documents, tax identification and local representation;
• Compliance framework: preparation of AML/CFT, KYC, sanctions, risk management, cybersecurity and internal control policies;
• Local operating substance: registered office, compliance personnel, accounting and other locally required functions;
• Professional support: regulatory assessment, preparation of the application and communication with the authorities;
• Ongoing costs: regulatory reporting, compliance reviews, accounting, corporate maintenance and any required audit or technical testing.

Once a complete application has been submitted, CNAD has up to 20 business days to issue a favourable or unfavourable decision or notify the applicant that information is missing. In the latter case, the applicant generally has 10 business days to complete the file. These statutory periods cover the formal review stage only and do not include company incorporation, pre-registration, document preparation or responses to additional regulatory questions.

An end-to-end licensing project may therefore take approximately three to six months, depending on the complexity of the business and the applicant’s readiness. This is a practical estimate rather than a guaranteed regulatory deadline.

Key2Law prepares an individual scope, timeline and cost estimate after reviewing the proposed services, assets and corporate structure.

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Post-licensing obligations

Holding a DASP or BSP registration is an ongoing regulatory commitment. Licensed businesses must comply with the following continuing obligations:

• Annual renewal fee: a renewal fee is payable to CNAD in the first quarter of each calendar year. Reported figures vary by source (from roughly USD 3,650 to over USD 4,000, and separate fee schedules may apply to BSP registrations specifically), so the exact current amounts are better to confirm with Key2Law before filing.
• Monthly transaction reports: submitted to CNAD within 10 business days of each month-end, covering transaction volumes, user numbers and incident disclosures;
• Quarterly financial reports: submitted to CNAD covering capital adequacy and operational metrics;
• Annual audited financial statements: certified by a registered external auditor;
• Ongoing AML/CFT compliance: continuous transaction monitoring, sanctions screening and suspicious activity reporting to the UIF within 24 hours of detection;
• Cybersecurity maintenance: annual or biennial penetration testing and incident reporting to CNAD for material breaches;
• Material change notifications: any change to the business model, ownership structure, key personnel or service offering must be reported to CNAD;
• Customer fund segregation: maintained at all times with quarterly reconciliation.

Failure to meet ongoing obligations may result in warnings, fines, suspension of registration or, in serious cases, revocation and public delisting from the CNAD registry.

Risks of operating without a crypto license

Providing regulated digital asset services in or from El Salvador without the required authorisation is illegal. CNAD maintains a public register of approved providers and may publicly identify companies that promote or offer services without meeting the applicable legal, AML/CFT, technological and cybersecurity requirements.

Operating without the appropriate licence may result in:

• Regulatory sanctions: breaches of the Digital Assets Issuance Law may lead to administrative measures, penalties and restrictions on further operations;
• Prohibition on regulated activities: the company may be prevented from legally offering exchange, custody, transfer, trading or other digital asset services in El Salvador;
• Public enforcement notices: CNAD may warn clients and market participants that a provider is not authorised;
• Banking and partner refusals: banks, payment providers, liquidity partners and institutional counterparties may decline to onboard an unlicensed business;
• Loss of tax incentives: statutory benefits available to registered digital asset providers may not apply to unlicensed activities;
• Reputational damage: regulatory non-compliance can undermine confidence among users, investors and prospective commercial partners;
• Higher remediation costs: correcting the corporate, technical and compliance structure after operations have started may be more expensive and time-consuming than licensing the project from the outset.

CNAD has already issued public notices concerning companies that promoted digital asset operations without completing authorisation and meeting regulatory requirements. Before launching or marketing services connected with El Salvador, the business should confirm its licensing scope and complete the required registration.

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Why choose Key2Law for BSP and DASP licensing support?

Key2Law provides coordinated support across the corporate, regulatory and compliance stages of an El Salvador crypto licensing project. We help clients define the correct licence scope from the outset, structure the local presence and prepare the documentation required for regulatory review.

Our support may include:

• Assessment of whether the project requires BSP registration, DASP authorisation or both;
• Incorporation of a Salvadoran company and coordination of the local corporate setup;
• Preparation of the licensing application and supporting documents;
• Development of AML/CFT, KYC, risk management and internal control policies;
• Coordination with local compliance officers, auditors and other service providers;
• Communication with the relevant authorities during the review process;
• Support with post-licensing reporting, compliance updates and corporate maintenance;
• Clear project scope, deliverables and cost structure.

By combining licensing, incorporation and compliance support within one project, Key2Law helps reduce duplication, avoid regulatory gaps and prepare the business for lawful operations in El Salvador.

Ready to get your El Salvador crypto license?

Key2Law can assess your business model, supported assets and planned services to determine the appropriate BSP, DASP or combined licensing scope. We then prepare a clear project roadmap covering company incorporation, local substance, regulatory documentation, AML/CFT policies and the application process. Our team coordinates the key stages of the project and helps the company prepare for both regulatory review and ongoing compliance after authorisation.

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Frequently asked questions

What is a crypto license in El Salvador?

An El Salvador crypto license authorises a company to provide specified services involving Bitcoin or other digital assets. Depending on the approved scope, regulated activities may include exchange, custody, transfers, wallet services, trading platforms and the administration of digital asset products.

What is the difference between BSP and DASP registration?

DASP registration applies to services provided by a Digital Asset Service Provider under the Digital Assets Issuance Law. BSP registration is intended for Bitcoin-specific services. The correct route depends on the assets supported, the services offered and the company’s role in client transactions.

Who regulates crypto businesses in El Salvador?

The National Commission of Digital Assets (CNAD) regulates and supervises DASP activity and maintains public registers of authorised providers. Bitcoin-specific services are registered separately through the Banco Central de Reserva (BCR), with CNAD holding expanded oversight of the Bitcoin ecosystem since the 2024 reforms. The Financial Investigation Unit is also involved in AML/CFT supervision and reporting obligations.

How do I obtain a crypto license in El Salvador?

The process generally involves assessing the business model, completing regulatory pre-registration, establishing the required corporate structure and preparing the full application package. The regulator then reviews the company’s ownership, governance, financial capacity, technology and compliance framework before issuing its decision.

How long does the licensing process take?

CNAD states that it has up to 20 business days to review a complete definitive DASP application. However, this period does not include pre-registration, company incorporation, preparation of policies or responses to additional requests. An end-to-end project may therefore take approximately three to six months, depending on its complexity.

How much does an El Salvador crypto license cost?

The total cost includes regulatory fees, company incorporation, compliance documentation, local personnel, professional support and ongoing corporate maintenance. For DASP registration, CNAD currently states the initial DASP registration fee is USD 5,475 (based on 15 times the applicable minimum monthly wage for the commerce and services sector, and subject to change if the minimum wage is adjusted), payable within 10 business days after a favourable decision.

Can a foreign founder own a crypto company in El Salvador?

Foreign founders may establish and own a Salvadoran company, subject to applicable corporate, registration and licensing requirements. The business must still maintain the local presence, governance and compliance arrangements required for its regulated activities.

Do I need both BSP and DASP registration?

A business may need more than one registration when its platform combines Bitcoin-specific services with other regulated digital asset activities. The licensing scope should be determined before incorporation and filing to avoid gaps, additional regulatory requests or changes to the operating model.